Donald Trump’s Greenland and Panama fixation: What is he really after?

President-elect Donald Trump, never one to shy away from bold declarations, has set his sights on two of the Western Hemisphere’s most strategically significant locations: Greenland and the Panama Canal. 

Speaking at a press conference on Tuesday, Trump expressed his interest in bringing both under U.S. control, even suggesting that military force could be an option.

Why Greenland?
Greenland, the world’s largest island, is located northeast of Canada and serves as a vital Arctic stronghold. Home to significant reserves of rare earth minerals, oil, and natural gas, the island has become a geopolitical hotspot as melting ice opens new shipping routes and boosts access to untapped resources.

“We need Greenland for national security purposes,” Trump stated. “I’m talking about protecting the free world. You look outside, and you see China and Russia’s ships everywhere. We’re not letting that happen.”

Greenland also hosts the U.S. military’s northernmost installation, Pituffik Space Base, which was established during World War II. Beyond defense, the island’s resources—including lithium and graphite, critical for electric vehicle batteries—have made it a potential linchpin for the green energy transition.

However, Greenland’s leaders have rejected Trump’s overtures. Prime Minister Mute Egede stated, “Greenland belongs to the people of Greenland. Our future is ours to shape.” Denmark, which oversees Greenland, has echoed this sentiment, citing the island’s autonomy.

Why the Panama Canal?
The Panama Canal, a man-made shortcut between the Pacific and Atlantic Oceans, is vital to global trade. About 40% of U.S. container shipping passes through the canal, making it a key artery for American economic interests.

Trump claimed that China has undue influence over the canal. “The Panama Canal is vital to our country. It’s being operated by China. We gave it away, and they’ve abused it,” he said. However, Panama’s leaders and China have both denied these allegations, reaffirming the canal’s neutrality and Panama’s sovereignty.

Both Greenland and the Panama Canal hold deep historical ties to the U.S. From establishing bases in Greenland during World War II to building and managing the Panama Canal for decades, America’s influence on these territories has been significant. Yet, modern international law and the principle of self-determination make Trump’s ambitions more complicated than past acquisitions like Alaska or the Virgin Islands.