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White House weighs cost of Trump's Greenland takeover plan

  • By Al Mayadeen English
  • Source: The Washington Post
  • 2 Apr 2025 14:38
4 Min Read

The Trump administration is now taking concrete steps towards acquiring the autonomous Island, amid strong resistance from both Greenland and Denmark.

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  • A fisherman rides on a boat though a frozen sea inlet outside of Nuuk, Greenland, Thursday, March 6, 2025 (AP)
    A fisherman rides on a boat through a frozen sea inlet outside of Nuuk, Greenland, on Thursday, March 6, 2025. (AP)

The White House is reportedly looking into how much it would cost the US government to control Greenland as a territory, The Washington Post cited three people familiar with the matter on Wednesday.

Staff at the White House budget office have been working to assess the potential costs associated with maintaining Greenland if it were to be acquired, and they are attempting to estimate the potential revenue that could be generated for the US Treasury from Greenland’s natural resources, according to two officials cited by The Post.

One proposal being considered is to offer Greenland's government a more attractive deal than Denmark's current arrangement, which provides approximately $600 million annually in subsidies for services on the island.

Internal planning indicates that the administration’s aspirations to acquire Greenland extend beyond the president’s casual remarks and are starting to be incorporated into official government policy, The Washington Post said.

A senior White House official said the administration is currently analyzing the estimated cost of acquiring Greenland, including factoring in the cost of providing government services to its citizens, with budget officials still working to determine what that cost could be, according to the White House official.

“There is a discussion about what would be the cost-benefit to the United States of America if we were to acquire Greenland,” the US official told The Post, adding, “What would it cost us to maintain Greenland as a United States territory?”

The White House official emphasized that the estimates are contingent on "whether Greenland's residents approve and back the proposal through a vote."

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Greenland more feasible than Canada, Panama Canal

According to an official familiar with his thinking, among the potential acquisitions President Trump has considered—such as Canada and the Panama Canal—he sees Greenland as the most feasible, with the official adding that the move aligns with a straightforward national security strategy from the president’s perspective, The Post stated.

Staff within the International Affairs Division of the Office of Management and Budget are conducting the cost analysis for Russell Vought, the agency's director.

According to The Washington Post, Trump has long viewed Greenland as a strategic prize for the US, prized for its mineral wealth and critical location, and its location at a key Arctic chokepoint sits near vital shipping lanes and military routes—including those used by nuclear-armed submarines to project power.

The Trump administration is looking for ways to convince the US public of the acquisition of Greenland by claiming that the federal government would recoup costs in Greenland through minerals royalties and taxes paid for commercial activities.

Another source familiar with the matter, who spoke anonymously to discuss private talks with administration officials, said the White House is exploring ways to "sweeten the deal" and make the prospect of joining the United States more appealing to Greenland.

The Washington Post pointed out that the true economic potential of Greenland’s mineral resources is still unclear, as mining is a highly unpredictable industry, and the harsh Arctic conditions further complicate operations, with Greenland’s government having previously halted certain mining projects.

“The idea that the U.S. is going to establish large-scale mining of deposits that haven’t been explored, may not be economical, and are currently under ice in a country that doesn’t want us there doesn’t pass the laugh test,” Alex Jacquez, a former senior official told The Post, adding “This is nothing but cover for Trump’s colonial fantasies and an opportunity for investors connected to him to make a quick buck.”

In January, the American Action Forum, a center-right think tank, stated that while the market price of Greenland’s mineral reserves indicates a valuation of $200 billion for purchasing the island, its strategic value in the North Atlantic is estimated to be closer to $3 trillion.

“Right now, we only have one location where we can monitor what goes on in the North Atlantic, and that’s Iceland. Greenland would give you that plus shipping routes with the polar ice caps receding — that’s a more strategic location,” Doug Holtz-Eakin, the president of American Action Forum told the daily.

  • United States
  • Greenland
  • Denmark
  • Donald Trump
  • white house

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