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When Donald Trump suggested a potential Greenland purchase in 2019, he presented it as “a large real estate deal” that could ease Denmark’s state finances. But this time, his main argument is that US control of the island is vital for national security
As China dominates the global rare earth market, Greenland’s reserves are of increasing interest to the US. (AP Image)
President-elect Donald Trump has resurrected his past interest in buying Greenland, which Greenland’s Prime Minister Mute Egede has said is “not for sale”. Trump cited “national security” reasons behind the need for the purchase of the island. “For purposes of National Security and Freedom throughout the World, the United States of America feels that the ownership and control of Greenland is an absolute necessity,” Trump said in a statement.
Trump also shared on Sunday the name of his chosen ambassador to Denmark, Ken Howery.
What To Make Of Trump’s Interest In Greenland?
The Wall Street Journal first reported in 2019 that Trump harboured an interest in buying the immense ice-covered island. As the diplomatic spat between the US and Denmark grew, The New York Times reported that “while Mr. Trump has long derided nation-building, his flirtation with nation-buying turned out to be more serious than many originally thought. He has been talking privately about buying Greenland for more than a year and even detailed the National Security Council staff to study the idea.”
But his idea was met with resistance from both Denmark (which governs Greenland) and Greenland itself. However, the proposal underlined Trump’s tendency to approach international relations with a focus on a businessman-like thinking.
When Trump suggested a potential Greenland purchase back in 2019, he presented it as “a large real estate deal” that could ease Denmark’s state finances. But this time, his main argument is that US control of the island is vital for national security.
Why Greenland Is Important To The US
Greenland lies in the northern Atlantic Ocean between Europe and America, and has long been a nexus of tensions among global powers. Besides being bigger than Mexico and Saudi Arabia, Greenland has a strategic location straddling the North Atlantic and the Arctic, a region whose vast stores of critical minerals and fossil fuels are coveted by the US, Russia and China.
The US operates the Pituffik Space Base (formerly Thule Air Base) on the island, which played a key role during the Cold War and continues to be critical for defence against Russia, China, and North Korea.
Greenland is rich in minerals essential for technology and defence, including rare earth elements used in mobile phones, electric vehicles, and weapons. As China dominates the global rare earth market, Greenland’s reserves are of increasing interest to the US.
Melting Arctic ice is opening new waterways, drawing global powers to the region. The US seeks to counter Russia and China’s growing influence in Greenland and the Arctic, ensuring its dominance in strategically evolving lands.
US’ Previous Efforts To Buy Greenland
Before buying Alaska, the US bought the territory of Louisiana from France for $15 million in 1803. There’s even a precedent involving Denmark. Under President Andrew Johnson in 1867, the US State Department noted Greenland’s resources and location as ideal for acquisition but made no formal efforts.
Nearly a century later, President Harry S Truman offered Denmark $100 million for Greenland in 1946 after recognising its strategic importance post-World War II. Truman also considered trading parts of Alaska for Greenland, though the deal never materialised.
How Much Would Greenland Cost Now?
Since the 830,000 square-mile (2.1 million square-kilometer) island isn’t currently on the market, there are no valuations available. It’s worth noting that its gross domestic product totalled over $3.2 billion in 2021, according to the World Bank. The island receives an annual subsidy of around $600 million from Denmark.
For perspective, the purchase price of Alaska in 1867, $7.2 million, would translate to just over $150 million today — which most would agree would be quite a bargain, as per Bloomberg.
How Denmark Wants To Invest In Greenland
After Trump’s interest in Greenland, the Danish government has announced an increase in its defence budget. Danish Defence Minister Troels Lund Poulsen said the package was a “double digit billion amount” in krone, or at least $1.5bn (£1.2bn).
Poulsen said the package would allow for the purchase of two new inspection ships, two new long-range drones and two extra dog sled teams.
“We have not invested enough in the Arctic for many years, now we are planning a stronger presence,” he said.
The defence minister did not give an exact figure for the package, but Danish media estimated it would be around 12-15bn krone.
