Donald Trump Revives Interest in Buying Greenland: A Price Tag of Billions

President-elect Donald Trump has once again expressed his desire to purchase Greenland, the autonomous Danish territory, raising questions about its valuation and feasibility. Estimates suggest that acquiring Greenland could cost between $12.5 billion and $77 billion, according to David Barker, a real estate developer and former New York Fed economist. These figures are based on past US land acquisitions, adjusted for inflation and economic growth.

This is not the first time a US president has shown interest in Greenland. In 1946, President Harry Truman offered Denmark $100 million in gold for the island, a proposal that was declined. Trump himself first floated the idea in 2019, citing Greenland’s strategic location and resources as key motivators.

Strategic and Economic Value

Greenland has long held strategic importance for the US, especially during the Cold War and in contemporary defense strategies. The island is home to the Thule Air Base, a critical asset for monitoring missile activities and maintaining Arctic dominance. Beyond its military significance, Greenland’s untapped mineral resources, such as copper and lithium, are highly valuable for modern technologies, including batteries and electric vehicles.

Financial Times reports have previously suggested Greenland’s natural resources could be worth $1.1 trillion, but experts like David Barker dismiss these estimates as overly optimistic. He argues that private companies extracting these resources would retain most of the profits, reducing direct benefits for the US government.

Challenges to the Acquisition

Despite Trump’s enthusiasm, Greenland’s leadership has categorically rejected the idea. Greenland’s Prime Minister, Mute Bourup Egede, reiterated that the island is "not for sale and will never be for sale." Additionally, national pride, democracy, and international norms make modern land acquisitions between countries exceedingly rare.

Even if Greenland were hypothetically for sale, complexities in pricing would arise. Its GDP of $3.236 billion doesn’t fully account for its unexploited resources, potential growth, or strategic value. Additionally, factors like infrastructure, quality of life, and the willingness of Greenland’s residents to integrate with the US further complicate the scenario.

A Modern-Day "Deal of the Century"?

While Trump has hinted at using tactics such as military leverage or economic incentives, experts agree that acquiring Greenland remains improbable. However, the debate highlights the growing global interest in the Arctic’s strategic and economic potential.

For Trump, securing Greenland would indeed be a landmark deal, but for now, the idea remains more of a geopolitical talking point than a tangible possibility.