Donald Trump’s latest tariff announcement has raised eyebrows, particularly for one surprising target: a U.S. military base. The British Indian Ocean Territory, a small group of islands in the South Indian Ocean, was hit with a 10% tariff on U.S. imports. The move came as part of Trump’s Liberation Day announcement on Wednesday.
The British Indian Ocean Territory is mostly uninhabited, with about 3,000 U.S. and U.K. military personnel stationed at a joint Navy Support Facility on the island of Diego Garcia. Trump’s tariffs are likely to impact the service members living and working there. Another 1,200 people live on the nearby Chagos Archipelago, but that’s about it for the population.
Despite being home to a U.S. military base, these islands are still owned by the United Kingdom. Trump’s 10% tariff was applied to the UK, but it’s on the lower end compared to tariffs placed on other countries.
In a bizarre move, Trump also announced tariffs on the Heard Island and McDonald Islands, an Australian territory that’s uninhabited and known for its pristine environment, untouched by human activity. These islands are a UNESCO World Heritage site for their complete lack of alien plants and animals, as well as minimal human impact.
It’s unclear whether the tariffs on these territories would stack up to 20% or if they were just an oversight. Some have speculated the tariffs were based on internet domain names. The Heard Island and McDonald Islands use a different domain (.hm) than Australia’s (.au), which might have led to the strange tariff decisions. It seems like no one actually thought through the consequences of this move.
