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Donald Trump said at a press conference in Florida that both Panama Canal and Greenland are important for America’s national security, and hasn’t ruled out the use of military to acquire them. He also said he would apply ‘economic force’ on Canada to become the…Read More
Donald Trump has criticised American spending on Canadian goods and military support for Canada, saying the US derives no benefits from it. (AP Image)
US President-elect Donald Trump has ratcheted up threats on Panama and Greenland as part of his broader expansionist agenda, which he has promoted during elections. Not just that, Trump has also floated the idea of merging Canada with the US as its 51st state.
Trump reiterated his stand why both Panama and Greenland are important for American national security, and said he won’t rule out using military or economic force in order to take over the autonomous Danish territory or Panama Canal.
“I can say this, we need them for economic security,” he told reporters during a wide-ranging news conference at his Mar-a-Lago estate in Florida on Tuesday.
Both Panama Canal and Denmark have rejected any suggestion that they would give up their territory.
Meanwhile, Trump criticised American spending on Canadian goods and military support for Canada, saying the US derives no benefits from doing so, and called the border between the two countries an “artificially drawn line”.
In response to Trump, Justin Trudeau wrote on X, “There isn’t a snowball’s chance in hell that Canada would become part of the United States.”
How Trump Wants To Carry Out His Expansionist Agenda
Trump said he would apply “economic force” on Canada to become the 51st state of the US. “Canada, don’t take our cars, our farm products, anything, so we won’t take their products either. We basically protect Canada. We are spending hundreds of billions a year to take care of Canada. We lose in trade deficits… You know, they make 20% of our cars. We don’t need that. I’d rather make them in Detroit,” Trump said.
Trump criticised Mexico for exploiting the US in trade and pointed out violence tied to drug gangs. “We have a massive deficit with Mexico, and we help Mexico a lot. They’re essentially run by the cartels… we’re going to be announcing a future date. Pretty soon we’re going to change because we do most of the work there, and it’s ours,” he said.
He said he wants to rename the Gulf of Mexico as the Gulf of America. “We’re going to be changing the name of the Gulf of Mexico to the Gulf of America, which has a beautiful ring. That covers a lot of territory, the Gulf of America — what a beautiful name. And it’s appropriate,” Trump said. The petroleum-rich body of water is the world’s ninth-largest, and has been identified on maps as the Gulf of Mexico since the 1500.
In November, Trump had announced that he planned to impose 25% tariffs on Canadian and Mexican goods upon taking office unless both nations address the flow of migrants and drugs into the US.
He has suggested imposing tariffs on Denmark if it resists his offer to purchase Greenland. His son, Don Junior, is in Greenland for a private visit.
How Canada Is US’ ‘Natural Trading Partner’
Canada has outgrown many of its protectionist roots and is now a trading nation. Despite having only 0.5% of the world’s population, Canada has 2.2% of the total of world trade. Exports of goods support one out of every six Canadian jobs.
While the Canada-United States-Mexico Agreement (CUSMA) and its predecessor, the North American Free Trade Agreement (NAFTA), grabbed world’s attention, Canada has a total of 15 free-trade agreements covering 61% of world GDP, providing Canadian companies with access to 1.5 billion consumers worldwide, according to a report by The Conversation.
The US makes for a natural trading partner, given its large market and close proximity to Canada. The two countries share similar cultural norms and legal systems, and the same time zones and existing infrastructure, including ports, railways and bridges.
A Canadian Senate report on Canada’s free-trade agreement with Europe notes that “European companies have easier access to some Canadian markets than Canadian companies from another province.”
The Canadian Federation of Independent Business (CFIB),however, has said “it’s easier to do business in the US than in another part of Canada.”
How Panama Canal Became Important?
The Panama Canal is the umbilical cord that ties North and South America together. Although the canal is a mere 82 km in length, the width of the country of Panama at one of its narrowest points. It is among the most iconic pieces of infrastructure in the world, and was considered one of the Seven Wonders of the Modern World by the American Society of Civil Engineers.
When the Panama Canal opened in 1914, it stood as a testament to human innovation. However, its creation was not without controversy. The US initially supported Panama’s independence from Colombia to secure the rights to build the canal.
The Hay-Bunau-Varilla Treaty granted the US control over the Panama Canal Zone, a move that sparked resentment among Panamanians for decades.
The US accounts for about 75% of the canal’s traffic, with China ranking as the second-largest user.
The Panama Canal finished the 2020 with $3.4 billion in revenues, up 7.2% on the 2019 fiscal year. In 2020, the canal’s direct contribution to Panama’s national nominal GDP was 2.7%. Transits across the canal totalled 13,369 in the 2020 fiscal year, a 3% drop on the previous year. It is widely believed that the Covid-19 pandemic contributed to this dip. Its tonnage for the 2020 fiscal year was 475.2 million.
But the canal has faced several challenges over the years, including severe droughts. In 2023, low water levels forced administrators to reduce daily ship transits and raise tolls, leading to supply chain disruptions.
Why Is Trump Interested In Greenland?
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.
