White House Makes Quick Policy Reversal Following Criticism
In a surprising turnaround, Washington has significantly reduced previously announced tariffs on French overseas territories that were initially targeted for substantial import levies, according to information obtained by AFP on Friday.
The adjustment comes just days after the territories were included in a comprehensive global tariff plan that drew immediate and sharp criticism from French regional leaders.
Initial Tariff Announcement Sparked Outrage
The Trump administration published a list on Wednesday outlining planned duties for numerous countries and territories worldwide. In this original announcement, the Indian Ocean territory of La Reunion faced a proposed 37 percent tariff rate, while the North Atlantic territory of Saint-Pierre-et-Miquelon was slated for an even steeper 50 percent duty.
Regional officials responded with immediate condemnation. La Reunion’s President Huguette Bello did not mince words, labeling President Trump as “ignorant” following the announcement. Similarly, Saint-Pierre-et-Miquelon’s representative Stephane Lenorman publicly criticized what he described as “incompetence in the American administration.”
Swift Revision Brings Significant Reductions
By Friday, an updated version of the tariff list revealed substantial reductions for both territories. La Reunion, which holds the unique position of being part of the European Union’s shared customs area while maintaining separate tax territory status, will now face a much lower 10 percent tariff rate.
Saint-Pierre-et-Miquelon, technically outside EU membership, received the same adjusted rate of 10 percent. This revision aligns these territories with other French overseas possessions including Guadeloupe, Martinique, French Guiana, and Mayotte, which were already scheduled for the lower rate.
Australian Territory Also Benefits From Reduction
The policy adjustment wasn’t limited to French territories. Norfolk Island, an Australian possession located between New Zealand and the French Pacific territory of New Caledonia, also saw significant relief. The island, home to just 2,000 residents, initially faced a 29 percent import duty but will now be subject to only a 10 percent rate.
Broader Tariff Implementation Timeline
The tariff revisions come as part of a broader implementation schedule that begins this weekend. Starting Saturday, a base tariff of 10 percent will apply to imports from virtually all countries, with only Canada and Mexico receiving exemptions.
The schedule then escalates next Wednesday when dozens of US trade partners will face increased rates. European Union importers will see their tariffs rise to 20 percent, while Chinese imports will be subject to a substantial 34 percent duty.
Analysis: Trade Policy Implications
Trade analysts suggest this rapid policy adjustment demonstrates the complexity of implementing broad tariff policies across territories with varying economic and political relationships. The swift reversal may indicate heightened sensitivity to diplomatic repercussions following immediate and vocal criticism from affected officials.
The reduction specifically for these smaller territories could represent a strategic compromise, allowing the administration to maintain its broader tariff agenda while addressing the most vocal criticisms from territories with relatively limited economic impact on overall US trade.
Economic Impact Considerations
For the affected territories, even the reduced 10 percent tariff represents a significant new trade barrier. Territories like La Reunion and Saint-Pierre-et-Miquelon have historically relied on specialized exports to maintain economic stability within their remote locations and limited resource bases.
While the reduction provides some relief, regional economists note that even the lower rate could disrupt established trade patterns and potentially increase consumer costs in these already economically vulnerable regions.
