Donald Trump’s Panama Canal, Greenland remarks spark geopolitical tension

President-elect Donald Trump has stirred international tensions by suggesting the US should take control of the Panama Canal and Greenland.

Trump previously sought to buy Greenland in 2019 but canceled a state visit when Denmark dismissed the idea.

In public comments on Sunday and social media posts, Trump claimed the United States is being “ripped off” and insisted that Panama return the canal. Panamanian President Jose Raul Mulino rejected the idea, asserting that Panama’s sovereignty is “not negotiable”.

Later, the same day, Trump revived his interest in Greenland, declaring that its ownership was vital for US security. The comment came during the president-elect’s announcement of his pick for U.S. ambassador to Denmark, which controls the island.

Denmark dismissed similar proposals in the past.

Greenland, rich in gold, silver, uranium and potential offshore oil, provides vital Arctic access amid growing Russian claims near its Exclusive Economic Zone. The United States has pursued Greenland since 1867. 

Although geographically part of North America, the island remains linked to Europe through Denmark and European Union funding.

Foreign policy and diplomatic tensions
Trump’s confrontational rhetoric signals a foreign policy approach that could strain relations with allies.

Additionally, Trump proposed using US military forces to combat Mexican cartels and suggested that Canada could become the 51st state, escalating diplomatic tensions.

Critics argue his comments provoke unnecessary conflict, while others view them as political posturing.

Panama Canal and global trade
The canal, a vital trade route handling 4% of global trade, remains a point of national pride for Panama. Trump’s remarks drew international support for Panama, with Colombia’s president pledging to defend its sovereignty.

The Panama Canal moves ~$270 billion worth of cargo annually. It’s the trade route taken by 40% of all US container traffic alone.