Explainer-Why does Trump want Greenland and could he get it?

Published 2025-01-14, 10:55 a/m
© Reuters. FILE PHOTO: A view of Pituffik Space Base (formerly Thule Air Base) in Greenland, October 4, 2023. Ritzau Scanpix/Thomas Traasdahl via REUTERS/File Photo
NG
-

By Jacob Gronholt-Pedersen, Louise Rasmussen, Stine Jacobsen

COPENHAGEN (Reuters) -U.S. President-elect Donald Trump says he wants to make Greenland a part of the United States and does not rule out using military or economic power to get Denmark to hand it over.

WHY DOES TRUMP WANT GREENLAND?

Greenland's strategic location and resources could benefit the U.S. It lies along the shortest route from Europe to North America, vital for the U.S. ballistic missile warning system.

The U.S. has expressed interest in expanding its military presence, including placing radars there to monitor the waters between the island, Iceland and Britain, which are a gateway for Russian navy vessels and nuclear submarines.

The island, whose capital Nuuk is closer to New York than the Danish capital Copenhagen, boasts mineral, oil and natural gas wealth, but development has been slow.

This has kept Greenland's economy reliant on fishing, which accounts for over 95% of exports, and annual subsidies from Denmark, which cover roughly half of the public budget. In total, Denmark spends just under $1 billion each year on Greenland, or $17,500 for each of its 57,000 residents.

A 2023 survey showed that 25 of 34 minerals deemed "critical raw materials" by the European Commission were found in Greenland. They include materials used in batteries such as graphite and lithium, and so-called rare earth elements used in electric vehicles and wind turbines.

WHAT PRESENCE DOES THE U.S. HAVE IN GREENLAND NOW?

The U.S. military maintains a permanent presence at the Pituffik air base in Greenland's northwest.

A 1951 agreement between the United States and Denmark established the United States' right to move around freely and construct military bases in Greenland as long as Denmark and Greenland are notified.

Historically, Denmark has accommodated the U.S. because Copenhagen does not have the capability to defend Greenland, and because of U.S. security guarantees to Denmark through the NATO alliance, said Kristian Soeby Kristensen, senior researcher at Copenhagen University's Centre for Military Studies.

COULD TRUMP BUY GREENLAND?

Trump's Republican allies in the U.S. House of Representatives are trying to build support for a bill, which, if passed, will allow the president to enter into negotiations with Denmark on Jan. 20, when Trump takes office.

According to Ulrik Pram Gad, senior researcher and expert on Greenland, the idea of buying Greenland is based on a misunderstanding of international law and the principle of self-determination, which gives people the right to choose their own political status.

While Trump has declined to rule out the use of military or economic means to gain control of Greenland, Vice President-elect JD Vance, speaking to Fox News, has dismissed the use of military force.

WHAT IS GREENLAND'S STATUS NOW?

The island, a former colony of Denmark, became a formal territory of the Nordic kingdom in 1953 and is subject to the Danish constitution, meaning that any change to its legal status would require a constitutional amendment.

In 2009, the island was granted broad self-governing autonomy, including the right to declare independence from Denmark through a referendum.     

Decades ago, the U.S. under then-President Harry Truman sought to buy the island as a strategic asset during the Cold War for $100 million in gold, but Copenhagen declined to sell.

Trump offered to buy it in 2019 but both Greenland and Denmark rejected the proposal.

WHAT DOES GREENLAND WANT?

Relations between Greenland and Denmark have been strained following revelations of historical mistreament of Greenlanders under colonial rule. A majority of Greenland's inhabitants support independence, but they are divided over the timing and potential impact on living standards.

Greenlandic politicians have since 2019 repeatedly said they are interested in strengthening cooperation and trade with the United States.

However, Greenlandic Prime Minister Mute Egede, who has stepped up a push for independence, has stressed the island is not for sale and that only its people should decide their future.

WHAT IF GREENLAND BECOMES INDEPENDENT?

If Greenland becomes independent, it could choose to become associated with the U.S. without becoming U.S. territory.

The island could form a so-called "free association" with the United States that would replace Danish subsidies with U.S. support and protection in return for military rights, like the Marshall Islands, Micronesia and Palau. 

While there is a push in Greenland to be independent from Denmark, Greenlanders are not interested in a new colonial master, according to Gad, the researcher.

Gad also said that Greenlanders would likely ensure their future welfare before holding an independence referendum.

WHAT DOES DENMARK SAY?

© Reuters. FILE PHOTO: A view of Pituffik Space Base (formerly Thule Air Base) in Greenland, October 4, 2023. Ritzau Scanpix/Thomas Traasdahl via REUTERS/File Photo

Trump's 2019 offer to buy the island was firmly rejected by Denmark and labelled "absurd" by Prime Minister Mette Frederiksen.

When asked about Trump's renewed interest in January, Frederiksen said Denmark needed to cooperate closely with the U.S., but stressed that Greenland should determine its future.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.