Ever since he took charge in January, US President Donald Trump has set his eyes on acquiring Greenland, an autonomous Danish territory. The island has stated that it is not for sale. The Trump administration has pressed on despite these assertions. The White House has now begun looking into the exact costs of acquiring Greenland, The Washington Post reported Tuesday, citing insiders.
According to the report, the White House budget office is calculating the potential costs of maintaining Greenland if it were acquired, including providing government services to the island’s 58,000 residents.
One of the proposals on the table is to offer Greenland a sum higher than the subsidies provided by Denmark. The staff is also studying potential financial gains from Greenland’s sought-after mineral resources.
How much does Denmark pay Greenland?
A report by the European Parliament Research Services states that the Danish government provides a grant of 3.4 billion Danish krone (nearly 491 million US dollars) annually, which makes up for half of Greenland’s revenue and nearly 20 per cent of its Gross Domestic Product (GDP).
In 2023, Denmark provided Greenland with DKK 4.14 billion (~USD 600 million). It also gave the island over USD 200 million in additional expenses to cover costs of public order and safety, police and military forces, courts, and research, among others.
Additionally, the European Union gives Greenland around €17.29 million (over USD 18 million) annually to access its Exclusive Economic Zone (EEZ).
Greenland’s push for independence
Over the years, Greenland has been making efforts to reduce its dependence on block grants from Denmark as it eyes full sovereignty. The island is looking to leverage its vast, untapped mineral resources, critical to the development of batteries and chips, to attract foreign investment.
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A January survey of Greenlanders showed that an overwhelming majority of 85 per cent of respondents did not wish for the island to become part of the US. More than half the respondents also favoured independence for Greenland.
Last month, Greenlanders elected the Demokraatit party to Parliament. The party espouses a slow approach to independence. The newly elected Prime Minister, Jens-Frederik Nielsen, on Sunday asserted that the US “will not get” Greenland. “We do not belong to anyone else. We decide our own future,” he wrote in a Facebook post. Nielsen, however, has expressed interest in a partnership with the US based on “mutual respect”.
On Wednesday, he will welcome Danish Prime Minister Mette Frederiksen for her three-day visit to the island. This comes after a recent visit from US Vice President J D Vance, who criticised Denmark for failing to keep Greenland “safe” from Russian and Chinese incursions. Fredriksen refuted these allegations. Earlier, she had rejected the possibility of Greenland’s sale, saying that the island belonged to Greenlanders.
Notably, Vance became the highest-ranking officer of the Trump administration to visit the territory. His stay was met with opposition from the island residents, prompting a change in his and his wife’s travel itinerary.
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Why Trump wants Greenland
In his inaugural speech on January 20, Trump invoked “manifest destiny”, a 19th-century concept to justify territorial expansion, rooted in the belief that Americans were destined to settle the entire continent of North America.
“The United States will once again consider itself a growing nation — one that increases our wealth, expands our territory, builds our cities, raises our expectations, and carries our flag into new and beautiful horizons,” Trump had said.
Critics suggest that acquiring Greenland was part of Trump’s expansionist agenda.
Trump has claimed that Greenland was crucial to American security and the economy. It gives the US a closer vantage point into its rivals’ — Russia and China — activities. It also boosts the US’s presence in the Arctic region, opening up trade routes. Trump also wants to tap into the mineral resources of the island.
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In recent remarks, Trump did not rule out the use of military force to take Greenland.
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