Donald Trump’s Greenland Purchase Plan: What Would It Cost?

Donald Trump, the President-elect of the US, has expressed his desire to buy Greenland. Greenland is an autonomous territory of Denmark. The cost of purchasing Greenland could be between $12.5 billion and $77 billion. David Barker, a real estate developer, gave this estimate. Barker is also a former economist at the New York Federal Reserve. He based his estimate on the prices of the US Virgin Islands and Alaska. These prices were adjusted for inflation and economic growth.

Trump first showed interest in Greenland in 2019. He suggested that the US should buy the territory. Greenland’s location has been valuable to the US since the Cold War. In 1946, President Harry Truman offered $100 million in gold to buy Greenland. The Danes declined the offer at that time.

The US has bought other territories before. This includes the Louisiana Purchase, Alaska, and the US Virgin Islands. There are some examples of a nation buying territory from another.

Barker believes that Greenland’s value could increase due to its role in US defense. However, he said that the size of the US economy would matter. If the value is based on minerals, the economy size would not matter. A report from the Financial Times said Greenland’s resources could be worth $1.1 trillion. Barker disagreed with this estimate. He said the US would not fully benefit from resource extraction. Companies would buy the drilling and mining rights. They would consider their own costs and profits.

It may not be easy for Trump to buy Greenland. Trump is interested in Greenland for national defense reasons. However, the island’s residents may not want to join the US. Greenland’s Prime Minister, Mute Bourup Egede, said that Greenland is “not for sale and will never be for sale.”

Putting a price on Greenland is difficult. GDP measures a country’s economic output, but it is not enough. Greenland’s GDP is about $3.236 billion. However, its true value includes untapped resources and future growth.

Greenland has resources like copper and lithium. These resources are needed for technologies such as electric vehicles. Greenland’s strategic location and quality of life add value as well.

Greenland has been a NATO ally for a long time. The US has a military presence on the island. Trump has suggested using military force or tariffs in negotiations. Denmark’s economy which is growing due to pharmaceutical exports to the US adds more leverage.

Buying land or territory is rare today. National pride, democracy and international norms make such deals unlikely. Greenland may have a price, but a deal will be difficult. It is considered the "deal of the century," according to Barker.