Why Is Trump So Eager to Buy Greenland?


Does the title amuse you? In fact, it’s kind of true. You’ve probably heard the news that Trump has his eye on Greenland, the world’s largest island in the Arctic near the North Pole. Yes, he wants to buy it and make it part of Alaska.

This isn’t the first time the US has done this. Apparently, the US has a long history of trading land!

Did you know that Alaska was never part of the United States? In 1867, the US bought the state of Alaska from Russia for $7.2 million. Even before that, in 1803, they bought Louisiana from France for $15 million.

But these weren’t just acquisitions for the sake of acquisition. Take the Louisiana Purchase, for example.

At the time, the Louisiana port of New Orleans was the main trade route for the US, connecting goods from the American heartland to international markets. However, the Americans faced obstacles from Spain, who once controlled Louisiana, and later from France.

Then American President Thomas Jefferson, realizing the strategic importance of New Orleans and the need to keep trade routes unimpeded, quickly stepped in. So he sent negotiators to France to buy the port. But surprisingly, Napoleon Bonaparte, who was strapped for cash, made Jefferson a once-in-a-lifetime offer. Instead of just New Orleans, he offered to sell the entire Louisiana Territory!

This story is a reminder of how America has historically approached land acquisitions on financial and geopolitical grounds. Greenland could be the next chapter in that playbook.

But you’ll need a little background to understand this.

You’ve probably heard of China’s Belt and Road Initiative, a modern version of the ancient Silk Road that aims to increase global trade through infrastructure and connectivity. But China is taking it all the way to the Arctic—yes, the frozen north. This initiative is called the Polar Silk Road (PSR).

What’s the PSR all about, you ask?

Look, we all know that the polar ice caps are slowly melting. In the coming years, climate change could create ice-free seasons in the Arctic Ocean. This could establish a sea route as a major trade route between the Americas, Europe, and Asia, significantly reducing shipping times compared to traditional trade routes such as the Suez or Panama Canal. Costs would even plummet, benefiting China’s vast trade networks.

And it’s not just about shipping. The Arctic is a treasure trove of natural resources—oil, gas, rare earth minerals, you name it. And China, a resource-hungry country, is looking to grab as much of it as it can. There’s also the opportunity for scientific research, as the Arctic offers a front-row seat to study climate change and explore new technologies.

To further its ambitions, China is also trying to recruit countries close to the Arctic to develop the Northern Sea Route (NSR). Part of the Polar Silk Road (PSR), the route could become a faster and more efficient shipping route between Asia and Europe.

You see, China already has good relations with Russia, largely because it is one of the largest buyers of Russian oil at a time when Western nations are boycotting Russia. But it also extends to Norway, Sweden, and Denmark. To sweeten the deal, China is offering joint projects like satellite navigation systems, fiber optic cables, and energy initiatives including Russia’s Yamal LNG project.

Iceland and Greenland, meanwhile, have shown interest in China’s plans for Arctic infrastructure.

This is where Donald Trump comes in!

He is determined to counter the growing influence of China and Russia in the Arctic, especially in Greenland. Although technically part of Denmark now, Greenland operates with a fair amount of autonomy, so Trump has offered Denmark a deal that essentially says, “Hey, we’re going to protect Greenland with frigates, air fleets, missiles, and infantry.” But in return, Denmark and Greenland would have to allow the US access to Greenland’s rare earth minerals, oil, and other resources.”

Sure, one might think Trump is doing a favor to the Greenlanders and Denmark, but that’s not the whole picture. Just look at the prices of critical minerals like antimony and gallium. They’re rising because of their increasing importance in battery and EV technologies. So for the US, this isn’t really about philanthropy, but rather a golden opportunity to secure these valuable resources.

But the Arctic isn’t just about resources. It also has significant military importance, serving as a prime location for nuclear-armed submarines that can hide under the ice and attack North America, Europe, and Russia in the event of conflict. Now, if China were to control the region, it would be a major threat to the US.

Greenland also currently hosts the US Pituffik Spaceport under costly leases. To put that in perspective, the US under the Biden administration signed a 12-year, $4 billion deal to maintain a military presence on the island. So owning Greenland would streamline Trump’s defense spending and turn the region into a self-sustaining financial asset.

Trump may actually have a shot at influencing Greenland.

Look, despite being an autonomous region, Greenland is still economically dependent on Denmark, which provides significant annual support through block grants. Fishing remains a major driver of the Greenland economy, but the sector no longer creates as many jobs as it once did. At this point, the Greenland government is focused on independence and is exploring ways to monetize the island’s rich mineral resources, including gold, natural gas, diamonds, lead, and zinc, and hoping to attract foreign investment.

But if Trump can convince the Greenland government that aligning with the US would yield greater economic benefits than remaining under the Danish umbrella, the island may consider getting out of the way.

This would free up the US to exploit Greenland’s vast resources while also countering Chinese influence.

When you think about it, doesn’t this seem like a modern version of the Louisiana Purchase? Just as President Jefferson recognized the strategic and economic value of New Orleans, Trump seems to have his eye on Greenland for its geopolitical and resource-rich advantages.

The only added layer this time is to keep rivals like China at bay.

Who knows, just as Napoleon needed money and sold Louisiana, Greenland may eventually consider Trump’s offer, especially if it improves its financial situation. That is, unless their desire for independence is too strong to compromise.

 

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