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Explainer-Why does Trump want the US to control Greenland?
Published by Global Banking and Finance Review
Posted on March 7, 2025
5 min readLast updated: January 25, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on March 7, 2025
5 min readLast updated: January 25, 2026
Trump's interest in Greenland is driven by its strategic location and resources, impacting US-Denmark relations and Greenland's autonomy.
By Jacob Gronholt-Pedersen, Louise Rasmussen, Stine Jacobsen
COPENHAGEN (Reuters) -U.S. Vice President JD Vance's trip to Greenland on Friday comes at a time when President Donald Trump is insisting that Washington should take over the semi-autonomous Danish territory.
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 existing military presence on the island, 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.
On Wednesday, Trump reiterated his desire to take over the island, saying the U.S. would go as far as needed to take it.
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 and the mining sector has seen very limited U.S. investment. Mining companies operating in Greenland are mostly Australian, Canadian or British.
A White House official has said Greenland has ample supply of rare earth minerals that would power the next generation of the U.S. economy.
WHAT IS THE CURRENT U.S. PRESENCE?
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 gave the U.S. the 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 NATO, according to Kristian Soeby Kristensen, senior researcher at Copenhagen University's Centre for Military Studies.
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.
In 2009, the island was granted broad self-governing autonomy, including the right to declare independence from Denmark through a referendum.
Under the 2009 law, Greenland's parliament, Inatsisartut, can invoke a provision that would have Denmark and Greenland begin negotiations about achieving full independence.
The people of Greenland would need to endorse independence through a referendum, and an independence agreement between Denmark and Greenland would also require consent from the Danish parliament.
Jens-Frederik Nielsen, leader of the pro-business Democrats, which came first in an election on March 11, has said he is seeking a broad coalition government to show unity in the face of the U.S. drive to control the island.
The party favours gradual independence from Denmark.
WHAT DOES GREENLAND WANT?
Relations between Greenland and Denmark have been strained after revelations of historical mistreatment of Greenlanders under colonial rule. However, Trump's interest in making the island part of the U.S. has prompted Denmark to accelerate work to improve ties with Greenland.
Opinion polls show a majority of Greenland's 57,000 inhabitants support independence, but they are divided over the timing and potential impact on living standards.
Many Greenlanders warn against acting rashly - fearing Greenland could become worse off and expose itself to the U.S. if it too quickly seeks independence from Denmark. Most Greenlanders do not want a new colonial master.
Greenland's economy has been 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 inhabitant.
Since 2019 Greenlandic politicians have repeatedly said they are interested in strengthening cooperation and trade with the U.S.
However, outgoing Prime Minister Mute Egede has stressed the island is not for sale and that only its people should decide their future.
WHAT IF GREENLAND BECOMES INDEPENDENT?
If Greenland became 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 U.S. that would replace Danish subsidies with U.S. support and protection in return for military rights, a set-up similar to the Marshall Islands, Micronesia and Palau.
According to Ulrik Pram Gad, senior researcher and expert on Greenland, Trump's 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.
WHAT DOES DENMARK SAY?
When Trump offered to buy the island during his first presidential term, Danish Prime Minister Mette Frederiksen called it "absurd".
Since Trump expressed renewed interest, Frederiksen has said Denmark wishes to cooperate closely with the U.S. while stressing Greenland should determine its own future.
Frederiksen said on Tuesday the U.S. was putting "unacceptable pressure" on Greenland with this week's visit and that Denmark would resist such pressure.
(Additional reporting by Johan Ahlander and Alessandro ParodiEditing by Gareth Jones, Peter Graff, William Maclean and Frances Kerry)
Trump believes Greenland's strategic location and resources could benefit the U.S., particularly for military purposes and economic development.
Greenland is a semi-autonomous territory of Denmark, having gained broad self-governing autonomy in 2009, with the right to declare independence through a referendum.
Many Greenlanders fear that seeking independence too quickly could negatively impact their living standards, as the economy relies heavily on fishing and Danish subsidies.
Danish Prime Minister Mette Frederiksen has called Trump's interest 'absurd' and emphasizes that Greenland should determine its own future, resisting any pressure from the U.S.
Greenland is rich in mineral, oil, and natural gas wealth, with a significant supply of rare earth minerals that are crucial for the next generation of the U.S. economy.
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