Basically, they’re claiming the Penguin Tariffs are there to prevent someone from transshipping their products via these islands, and claiming that they’re really made on the island, to avoid tariffs from their actual country of origin. Which sounds great, if you believe it, and if you don’t notice that people have already pointed out one such discrepancy in their tariff schedule which legally creates just such a transshipping opportunity:
But not because they automatically fall under the tariffs because they belong to Norway, but because they have their own tariffs. While Norway is subject to a 15% tariff, exports from Svalbard and Jan Mayen to the US are subject to a 10% tariff, according to NRK.
These places are all legally “Norway”, and there’s no way the US would be able to really figure out if products transshipped in Svalbard are really from there, or from mainland Norway. So yeah, I don’t believe they really planned this all out from the beginning. It looks like a stupid mistake, because it really was a stupid mistake.