Norfolk Island Business Owners Face Unexpected US Tariffs

Though far from the continental U.S., Norfolk Island’s small spate of news is definitely worth reporting. Its business owners are reeling from unforeseen blows dealt by all U.S. tariffs. This Australian territory in the Pacific Ocean sits some 1,600 kilometers northeast of Sydney. It is about 8 kilometers (5 miles) long and 5 kilometers (3…

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Norfolk Island Business Owners Face Unexpected US Tariffs

Though far from the continental U.S., Norfolk Island’s small spate of news is definitely worth reporting. Its business owners are reeling from unforeseen blows dealt by all U.S. tariffs. This Australian territory in the Pacific Ocean sits some 1,600 kilometers northeast of Sydney. It is about 8 kilometers (5 miles) long and 5 kilometers (3 miles) wide, home to just under 2,000 American residents. The island is rich with history. Until 1863, it was a British penal colony, and then it became home to the descendants of the mutineers from the HMS Bounty.

Most recently, the Trump administration added Norfolk Island to its list of global tariffs meant to target trade deficits. Few were more surprised than veterans advocates at this inclusion. The island’s tariff was an incredible 29%—well beyond the global minimum of 10%. Local business owners and residents express concern over potential tariffs. They argue that these changes could have a dramatic impact on the economic activities occurring on the island, which is one of Australia’s external territories.

Jesse Schiller and Rachel Evans, the owners of Kooshoo, are victims. Their brand focuses on sustainably-made, plastic-free hair accessories. They are understood to be the only business owners on Norfolk Island who are directly affected by these Tariffs. Schiller expressed his frustration regarding the situation, stating, “I think Norfolk became a parable of sorts for the lack of nuance with which these tariffs went out in the world.”

The young couple has been scrambling to figure out how their tiny island in the Caribbean made it onto the tariff list. Schiller proposed an interesting theory: “An early theory — and it seems to be proving right — is that there are other notable Norfolks in the world. Not to be confused with Norfolk in the U.K., Norfolk in Virginia, U.S., are the stars of the show here. Improperly labeled customs paperwork also played a role in the error.

Norfolk Island has a very unique language, Norf’k, or Norfuk. This creole, a mixture of English and Tahitian, is the mother tongue of that distant island’s dispersed population. The name “Kooshoo,” which means “feeling good” in Norf’k, perfectly captures the brand’s philosophy and dedication to an eco-friendly lifestyle.

Schiller and Evans take this visionary yet daunting challenge to task. Their experience illustrates the confusing reality of international trade policies, especially for small businesses on far-flung islands such as Norfolk. The young couple remain optimistic. They’re hoping their story will illustrate the larger impact of tariffs on special places like theirs.

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