In what must be one of the more extraordinary tariff decisions, Australian protectorates Heard and McDonald Islands have had 10% tariffs slapped on them, but Russian President Vladamir Putin has escaped with no additional tariffs. Ok, Russia already has sanctions applied, the pretext of a negotiated ceasefire really undermines Donald Trump who claimed he could end the war in 24 hours, that hasn’t happened, Trump’s claims fall apart quickly to all but his adoring MAGA fanclub. 

Situated deep in the southern Indian Ocean about halfway between Australia and Madagascar, the Heard and McDonald Islands are closer to Antarctica than Australia and form part of Australia’s external territories. The islands are unpopulated, this is where this tariff decision becomes remarkable, the islands have no economic output, they are neither exporters or importers. 

Not that a free trade agreement with the United States is worth anything anyway, the Trump Administration does not honour ratified and legally agreements. So after a rollercoaster financial week where all our retirement accounts were devalued for no reason, American worker’s 401(k) are tanking too, their exchange traded funds are tanking too. But American workers are less concerned about equity and bond markets, jobs and inflation are all they care about and they are not being fixed either.