What Motivates Trump’s Interests in Greenland and the Panama Canal? | US News

Following his re-election, president-elect Donald Trump has shown interest in acquiring both Greenland and the Panama Canal.

During a press conference on Tuesday, Mr Trump indicated that he could not guarantee that military or economic pressure would not be considered in efforts to take control of these regions.

“What I can say is that we need them for economic stability,” he stated.

The two territories, which are geographically distant from one another, serve different strategic interests for the incoming president.

However, his ambition to acquire both has sparked significant criticism.

What motivates Trump’s interest in Greenland?

Greenland is a semiautonomous region of Denmark, a founding NATO member and location for a major US military installation, with a population of 57,000 and a history as part of Denmark for 600 years.

Situated at the Arctic Circle between the US, Russia, and Europe, the island holds significant geopolitical importance that the US has pursued for over 150 years.

Its value increases as the Arctic becomes more accessible for trade and shipping.

The notion of purchasing Greenland is not fresh, having been raised during Trump’s first term, but he has since reiterated its potential contribution to America’s security.

“We require enhanced national security,” Mr Trump elaborated. “I have been informed of this for a significant time, long before I even considered running.

“Most people are unaware that Denmark has any legal claim to it, but if they do, they ought to relinquish it because we need it for national security purposes.”

Trump’s assertion about the island coincided with a visit from his son, Donald Trump Jr., who was in Greenland shooting footage for a documentary, as reported by NBC News, a partner network of Sky News.

Abundant natural resources

In addition to its strategic position, Greenland is rich in natural resources.

It houses valuable rare earth minerals essential for telecommunications, along with uranium, billions of untapped oil barrels, and a significant amount of natural gas that, while previously unreachable, is becoming more accessible.

Many of these minerals are predominantly sourced from China, prompting interest from the US and other nations to access resources that are geographically closer.

A front-row seat to the climate crisis

Beyond oil, gas, and minerals, Greenland features vast ice reserves and is a critical indicator of the planet’s climate issues.

If the ice were to melt entirely, it could result in global sea levels rising by 24 feet (7.4 meters).

Greenland also plays a role in influencing hurricane and winter storm patterns, as its significant ice masses can alter the behavior of the jet stream responsible for global storm movements and daily weather conditions.

In fact, the amount of ice in Greenland, if completely melted, would contribute to a 24-foot rise in global sea levels.

Additionally, Greenland’s melt and its icebergs significantly influence weather occurrences, particularly in North America and Europe, due to a persistent high-pressure system that shifts Arctic air during winter months, as explained by winter weather specialist Judah Cohen to the Associated Press.

‘Greenland is not for sale’

In response to Trump’s statements, Danish Prime Minister Mette Frederiksen expressed disbelief that the US would resort to military or economic pressures to take over Greenland in an interview with Danish broadcaster TV2.

“Greenland is not for sale,” Ms Frederiksen affirmed, adding, “We must remain calm and adhere to our principles.”

Identifying the US as Denmark’s “most vital and closest ally,” she welcomed enhanced American interest in the Arctic but insisted it should be approached with respect for the Greenlandic populace.

Historically, Greenland’s Prime Minister Mute Egede has advocated for independence from Denmark, yet has expressed no desire for the island to become part of the US.

Aaja Chemnitz, a Greenlandic member of the Danish parliament, remarked, “Most people don’t desire this.”

“Some might find it quite disrespectful, especially given the way it has been approached and the notion that a country can be bought.”

French foreign minister Jean-Noel Barrot also commented on the situation, asserting Wednesday that the European Union would not permit “other countries to infringe upon its sovereignty, regardless of who they are.”

“If you’re asking whether I think the United States will invade Greenland, my response is no. However, if we have entered an era where only the fittest survive, then yes,” Mr Barrot remarked.

Why is Trump interested in the Panama Canal?

The Panama Canal provides a vital link between the Caribbean Sea and the Pacific Ocean, acting as a shortcut that reduces both time and costs for transporting goods, according to the Panama Embassy.

Under Jimmy Carter’s administration, control of the canal was transferred from the US to Panama in 1979, with the US concluding its joint governance of the waterway in 1999.

Currently, it is overseen by the Panama Canal Authority, an independent governmental body, although a Hong Kong-based contractor manages two of its connected ports, as reported by NBC.

Mr Trump has claimed that the US faces being unfairly treated through “overcharging” higher fees for navigating the canal compared to other nations.

He alleged that Panama is in “violation” of an agreement with the US and that “China is essentially taking control”.

“We entrusted the Panama Canal to Panama, not to China,” Mr Trump stated on Tuesday. “They have misused that gift.”

Panamanian President Jose Raul Mulino dismissed in a video statement last month the notion of China having any influence over the canal, asserting that the authority of the canal rests entirely with Panama.

“Every single square meter of the canal is owned by Panama and will continue to be so,” he emphasized.

Is Trump’s plan feasible?

The incoming president has provided scant details on how he intends to expand the US presence, even as he continually pledged during the news conference to usher in a “golden age” of enhanced national security and “common sense”.

Regarding Greenland, Mr Trump hinted at the possibility of imposing tariffs on Denmark should it refuse his proposition to buy the territory.

This could potentially complicate matters for Danish enterprises, particularly pharmaceutical companies like Novo Nordisk, known for its weight-loss medication Wegovy and diabetes treatment Ozempic, as noted by investment publication Barron’s.

Eswar Prasad, a trade policy professor at Cornell University, informed the magazine that the Trump administration might design specific tariffs to hit products produced by Danish firms, irrespective of their manufacturing locations.