The global political stage was once again rocked today (February 18th) when US President Trump announced that, starting February 1st, the US will impose a 10% tariff on imports from eight NATO member states: Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. If these countries do not cooperate on the Greenland issue, the tariff will further increase to 25% on June 1st.
Trump bluntly stated, "This tax rate will remain in place until the deal to fully purchase Greenland is completed," while accusing these European countries of playing a dangerous game of "playing with fire" by sending troops to Greenland.
Why is Trump so fixated on this island, which is 60 times larger than Taiwan but has a population of less than 60,000 and 80% of its land is perpetually frozen? We will answer that question for you below.
Four Reasons Why Trump Wouldn't Buy Greenland
For Trump, the purchase of Greenland was driven by its irreplaceable strategic value in the current technological and military landscape.
"The Golden Dome": The outpost for the defense of the U.S. homeland
In multiple statements in 2025, Trump repeatedly mentioned the concept of "The Golden Dome." This is the most advanced missile defense system in the United States, designed to intercept missile attacks from China and Russia.
Geographical advantage: Greenland is located in the Arctic Circle, which is the shortest path for Russian missiles to strike the continental United States.
Radar Eye: The United States has already deployed the world's most powerful early warning radar at Pitufik Air Base on the island. If it can fully acquire sovereignty, the United States can expand its defense facilities, further enveloping the entire North American continent under a protective umbrella.
A lifeline to break the "rare earth chokehold"
On the other hand, Greenland is known as a "frozen treasure trove" and has the world's largest untapped rare earth deposits.
The heart of technology: Rare earth elements are core components of semiconductors, electric vehicles, and radar systems. Currently, China controls more than 85% of the global supply chain.
National security: The Trump administration knew that if it could establish an independent rare earth production base in Greenland, the United States' high-tech industry and military-industrial complex would be completely free from dependence on other countries and would no longer be held hostage by them.
Arctic shipping routes: Mastering the future of trade tollbooths
As global warming progresses, previously closed Arctic shipping routes are gradually opening up.
Time and space reduction: The Arctic shipping route is about 40% shorter than the traditional Suez Canal route, saving 7–15 days.
A commercial empire: Controlling Greenland is tantamount to controlling the "maritime highway entrance" to future Eurasian trade. This is not only a matter of commercial interest, but also a strategic high ground that can block enemy shipping at any time during wartime.
Vast energy reserves
Geological surveys indicate that the waters off northeastern Greenland contain approximately 31 billion barrels of oil and substantial amounts of natural gas. As the climate crisis intensifies, Greenland has shifted its focus to environmental protection, halting further oil exploration and prioritizing the development of renewable energy and key minerals.
But for Trump, who has always scorned global warming, this is tantamount to adding a highly valuable oil field to the United States.
As can be seen from the four reasons above, Greenland is not a desolate Iceland, but a strategically important location with potential for defense and resources in North America.
A Legacy of History: A Millennial Conflict Over "Status"
Having discussed the factors of interest, you might wonder why sovereignty over this giant island, which is closer to North America, is held by Denmark, located far away in Europe. This is actually the result of a series of unexpected historical events:
"Green Land": The Vikings' Marketing BTC
In the 10th century, a Viking nicknamed "Redbeard Eric" was exiled for killing someone in Iceland. He sailed to this vast land and found that although 80% of the island was covered in ice and snow, he used his marketing talent to name the place Greenland in order to lure the locals into investing in its development.
This tactic worked, and the Norwegian Vikings established themselves there, making Greenland initially part of Norway's sphere of influence.
The wordplay of the Kiel Treaty
Later, Denmark and Norway formed a united kingdom, with Denmark consistently as the leading member. In 1814, the Napoleonic Wars ended, and Denmark was defeated and forced to sign the Treaty of Kiel, ceding Norway to Sweden.
However, during the signing of the treaty, the Danish representative played a clever word game: the treaty stipulated that Norway belonged to Sweden, but Norway's original overseas territories—Greenland, the Faroe Islands, and Iceland—were quietly left under Danish jurisdiction. Sweden at the time didn't care about these barren, icy lands, which is why Denmark has retained sovereignty over them to this day.
Greenland's current situation: It wants independence but lacks the necessary resources.
Although Greenland has long been part of Denmark, the locals have extremely complex attitudes towards it.
The "Coming of Age Ceremony" in 2009
Greenland is currently a highly autonomous territory. Since 2009, except for defense and foreign affairs which are managed by Denmark, other areas such as resource development, justice, and education are managed by the Greenlanders themselves. This means that Denmark does not actually have the right to sell the island "without Greenland's consent".
Fiscal umbilical effect
Greenland's economy is highly dependent on a single source of income (fisheries account for 90% of exports), and it relies on approximately $600 million in subsidies from Denmark annually (equivalent to one-third of its GDP). While Greenlanders yearn for complete independence, the prospect of financial collapse after losing this crucial source of funding has made them hesitant to take the final step.
Trump's strategy exploited this very point. He hinted that the US could offer more generous "appeasement money" and bluntly stated, "Denmark can't protect you at all; they only have two sleds patrolling!"
Personal Legacy: Trump's Historical Ambition
Besides strategy and resources, another explanation is that Trump harbors a deep-seated desire for a place in history. He proclaims himself a great leader on par with Jefferson (who acquired Louisiana), Polk (who acquired California), and Seward (who acquired Alaska).
In his view, if he could complete this "largest real estate transaction in human history," he would become a historical giant who would significantly expand the territory of the United States, secure the United States' hegemony for the next century, and restore the United States' glory.
Crossroads of Fate in the Arctic Century
In summary, the battle for Greenland is essentially a microcosm of the geopolitical restructuring under the influence of climate change and great power competition. This frozen treasure trove is becoming a new battleground for great power rivalry in the 21st century.
For Denmark, this is a battle to defend its sovereignty and dignity; for Greenlanders, it's a choice between their dream of independence and the threat of power; and for Trump, it's a high-stakes gamble he's determined to win. As the February 1st tariff deadline approaches, the controversy surrounding this landmark deal will only intensify.
