Businesses in Norfolk have inadvertently drawn a tiny island in the Pacific Ocean into Donald Trump’s trade war, after a mix-up over shipments landed the island with a whopping tariff.
US officials appear to have misinterpreted goods coming from an aquarium firm in Horsham St Faiths and an engineering company in Diss as originating from Norfolk Island – more than 10,000 miles away. It meant the Australian territory, home to just 2,188 people, was surprised to be hit with 29% tariffs this week despite saying it has no trading relationship with the US. This rate is 19% higher than the rest of Australia which like the UK’s is 10%.
George Plant, the island’s administrator, says islanders have been left “scratching their heads” at why they are facing such high tariffs when their economy relies predominantly on tourism.
It’s all in the paperwork
The apparent blunder by US trade officials emerged in an investigation by The Guardian, which analysed US import data and shipping records used to calculate Trump’s tariffs. The research identified errors in shipment labels – including from companies in Norfolk – as the likely cause for the Norfolk Island tariffs.
Bills of lading – crucial documents used in international trade between carriers and shippers – have erroneously listed Norfolk Island as the country of origin in a number of cases where the shipments actually came from firms in Norfolk in the UK. Among them is OASE, a German aquarium and fountain company that has a base in Horsham St Faith.
Bills of lading relating to another Norfolk company, Novum Structures, in Diss, also name the Pacific island as the country of origin. The company, which is actually US owned and has its European headquarters in the south Norfolk town, makes impressive glass structures for cruise ships, buildings and train stations. Projects it has completed include a glass dome at Chester Zoo, Barking Riverside Station and Birmingham University’s STEAMhouse.
Data errors ripple out
The apparent errors in the shipping records appear to have flowed through to the US census and trade data used to calculate tariffs. Both OASE and Novum have been contacted for comment. There is no suggestion of wrongdoing by the companies or that any of the firms are responsible for the mix-up over the paperwork.
Australian officials have criticised the US, believing the blunders shows the tariffs were “rushed”. Along with Norfolk Island, other uninhabited islands off the coast of Australia have also been hit with tariffs.
Norfolk Island is about 870 miles east of the Australian mainland and its main export is evergreen pine – a species native to the island which adorns its flag. Aside from its stunning wildlife, visitors will find a vineyard, a chapel, a brewery and a few restaurants. Australia’s prime minister, Anthony Albanese, said the tariffs on the islanders show “nowhere on earth is exempt from this”.
Norfolk firms brace for impact
Closer to home, Norfolk in the UK has got off lightly compared to Norfolk Island, after being hit with a 10% trade tariff. But local businesses are worried about the implications. The US is one of the main nations Norfolk firms export goods to, with the market worth £352m according to 2020 data.
These tariffs are not paid directly by British manufacturers but by American importers. Those importers will recover these costs by increasing prices to American consumers. But this will mean British companies will suffer because their goods will become more expensive to buy and demand will likely fall.
The British car industry is set to be the worst hit by the new charges with a levy of 25%, which will likely affect Norfolk’s car manufacturer, Lotus. According to US enthusiast magazine Car and Driver, Lotus is halting exports to the US as a result of the increased tariff. A spokesperson told them: “Lotus has temporarily paused shipments to the U.S. as we assess the situation and determine the best path forward.”
These weren’t the only mistakes the Norfolk Islanders had levelled at them. According to US government data, they also exported $413,000-worth of Timberland ankle boots. The owner of the only shoe-shop on the island was taken aback when a Guardian journalist contacted him. “We are a shoe shop selling shoes to the tourists that visit the island and do not export shoes to the US or have any business with the US,” he told them. Timberland declined to comment on the error.
A distant island
So how did a Pacific Ocean territory get named after an East Anglian county? The answer is it was named after Mary Howard, Duchess of Norfolk – an 18th century noblewoman – after explorer Captain James Cook arrived on the island.
The tiny island formed about three million years ago as a result of volcanic eruptions. It remained uninhabited until East Polynesian seafarers settled there by the 13th century. But human occupation ceased for a few hundred years until European settlers arrived.
In 1824, the British government ordered it to became a penal colony reserved for only the “worst description of convicts”. The next major settlement came in 1856, when the HMS Bounty mutineers were resettled from the Pitcairn Islands, which became too small for their growing population.
Aside from the name, there are few similarities with its UK namesake besides their wide, sandy beaches, although both areas are known for their distinctive dialects. A creole language, ‘Norfuk’, has developed on the island.
There be penguins!
Norfolk Island wasn’t the only Australian territory that fell foul of paperwork input errors. Another was the Heard and McDonald islands near Antarctica, which apparently exported US$1.4m of “machinery and electrical” products to the US. This is remarkable given the island is uninhabited – at least by humans. There is a sizeable colony of penguins, and this fact led to a hilarious collection of memes on social media. We have collated some of the best in this article.
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