Greenland and the Panama Canal: Why Trump’s Bold Statements Are Stirring Controversy
President-elect Donald Trump campaigned on a vision of prioritizing domestic issues, including disengaging from foreign entanglements like the Ukraine conflict, boosting tariffs on trade, and revitalizing American manufacturing. Yet, recent remarks suggest his foreign policy may take a more assertive turn.
Trump has joked about incorporating Canada as a U.S. state, reignited calls to reclaim the Panama Canal, and reiterated his ambition to acquire Greenland—a Danish territory that has firmly rejected his overtures. While these bold ideas seem unlikely to materialize, they reflect a broader “America First” strategy that may involve projecting U.S. power overseas to secure economic and security interests.
The Panama Canal Debate
At a conservative conference in Arizona, Trump criticized Panama for imposing what he called “ridiculous, highly unfair” fees on U.S. ships passing through the canal. Though the U.S. built the canal in the early 20th century, it handed over control to Panama under a treaty in the 1970s. Now, Trump is threatening to demand its return if the alleged “rip off” continues, though he has not outlined specific actions to back up this threat.
Trump also expressed concerns about the canal’s potential to “fall into the wrong hands,” pointing to China’s significant economic stakes in Panama. China is the canal’s second-largest user after the U.S. and has poured substantial investments into the region. In 2017, Panama severed diplomatic ties with Taiwan, recognizing Beijing in a move that underscored China’s growing influence.
Will Freeman, a Latin America expert at the Council on Foreign Relations, highlighted the canal’s strategic importance. “In any potential military conflict with China, the canal would be critical for U.S. naval and trade operations,” he noted. Freeman also linked Trump’s complaints to his broader stance on trade, including his pledges to impose steep tariffs on foreign goods and his criticism of unfair treatment by trade partners.
Panama’s President José Raúl Mulino responded firmly, stating, “The canal and surrounding areas belong to Panama and will remain so.”
Greenland: The Arctic Jewel
Trump also turned heads with his renewed interest in Greenland, calling its control a “necessity” for U.S. national security and global freedom. The U.S. already operates the Pituffik Space Base in Greenland, and the territory boasts valuable natural resources like rare earth minerals. Its strategic location in the Arctic Circle has become increasingly significant as global powers, including Russia, seek to expand their influence in the region.
During his first term in 2019, Trump floated the idea of purchasing Greenland, but Denmark dismissed the proposal outright. This week, Greenland’s Prime Minister Múte B. Egede reiterated the territory’s stance: “We are not for sale and never will be.”
Despite the rejection, Trump doubled down on his remarks, sharing an image on Truth Social of an American flag planted in the Panama Canal. Meanwhile, his son Eric Trump posted a tongue-in-cheek graphic showing Greenland, the Panama Canal, and Canada added to an online shopping cart.
A Strategy for a Second Term
These provocative statements echo tactics Trump used during his first presidency, where threats of tariffs and other measures often served as leverage. For example, he pressured Mexico to strengthen border enforcement by threatening to deploy armed forces.
As he prepares for his second term, Trump’s willingness to wield America’s influence in unconventional ways could signal his approach to international relations. Denmark, in a show of caution, announced an increase in defense spending for Greenland shortly after Trump’s renewed comments.
Whether Trump’s threats will lead to tangible action or remain political posturing remains to be seen. For now, his bold rhetoric has put the spotlight on critical geopolitical regions and raised questions about how the U.S. will balance its domestic priorities with its global ambitions.
