Donald Trump’s renewed push for control of Greenland comes as Denmark announces a $2 billion Arctic defense upgrade. This upgrade points to the strategic value of an island that hosts America’s northernmost military installation and holds vast mineral wealth.

Located just 1,500 kilometers from the North Pole, Greenland’s Pituffik Space Base houses 200 U.S. military personnel and 450 allied forces, forming an important part of America’s missile warning system. 

According to a report issued by the Financial Times, the base could be the reason Trump calls the acquisition “an absolute necessity” for national security.

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Denmark’s Christmas Eve announcement of major military investments, including new ships, drones and expanded facilities for F-35 aircraft, follows Trump’s refusal to rule out using force to gain control of the island.

Danish Foreign Minister Lars Løkke Rasmussen responded by offering to discuss “even more closely” coordinating with U.S. security interests.

The world’s largest island sits at a critical Arctic shipping crossroads and contains 25 of 34 minerals deemed strategically critical by European regulators, including materials essential for electric vehicles and military equipment. China’s dominant position in rare earth production has heightened U.S. interest in the deposits.

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Despite Trump’s focus on security, Greenland’s 57,000 residents maintain strong independence aspirations. Prime Minister Mute Egede, who has accelerated pushes for sovereignty, firmly said Greenland “is not for sale.” The territory currently receives nearly $1 billion annually in Danish subsidies.

Denmark’s limited Arctic presence – just 75 troops in its Greenland Command – was highlighted when a stranded cruise ship waited four days for military rescue in 2023. The gap between responsibility and capability drives U.S. strategic concerns about Chinese and Russian Arctic ambitions.

While some Greenlandic officials privately welcome increased U.S. military presence, they resist any suggestion of replacing one colonial relationship with another. “We don’t want a new colonial power. But we can’t look after defence ourselves,” one official told the Financial Times.

Trump’s son Donald Jr.’s arrival in Greenland last week for what he called “a little bit of fun” has intensified speculation about future U.S. moves toward the strategic territory as climate change reshapes Arctic politics and economics.

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