$700 billion question: How much would it cost the US to buy Greenland?

Buying Greenland could cost the United States as much as $700 billion, according to a cost estimate prepared for Donald Trump’s long-standing ambition to acquire the Arctic island – an ambition that has unsettled Europe and drawn scrutiny on Capitol Hill. 

NBC News reported that the estimate, drawn up by scholars and former US officials familiar with internal planning, places the cost of acquiring Greenland at more than half the US Defence Department’s annual budget. For Washington, Greenland is a strategic buffer in the Arctic against its top adversaries – Russia and China.

Greenland is a semi-autonomous territory within the Kingdom of Denmark. Greenland and Denmark have dismissed Trump’s repeated assertions that the United States will acquire the island “one way or the other.”

“Greenland does not want to be owned by, governed by or part of the United States,” Greenland’s Foreign Minister Vivian Motzfeldt said as she arrived in Washington earlier this week. “We choose the Greenland we know today – as part of the Kingdom of Denmark.”

Trump, however, has continued to signal that acquisition remains central to his agenda. Asked whether there was a deal Greenland could offer, he told reporters last Sunday: “I’d love to make a deal with them. It’s easier. But one way or the other, we’re going to have Greenland.”

A senior White House official told NBC News that Secretary of State Marco Rubio has been instructed to develop a formal proposal in the coming weeks.

Earlier reporting has indicated that Trump’s national security team has also explored the idea of direct payments to Greenland’s residents as a means of persuading them to secede from Denmark. According to reports, figures ranging between $10,000 and $100,000 per person were considered.

Greenland’s GDP

This figure stands out when set against the size of Greenland’s current economy. According to the World Bank, Greenland’s gross domestic product is estimated at around $3.5-4 billion. Around 90% of exports derive from fishery-related products, Euro News reported on January 15.

Denmark currently supports Greenland through an annual block grant of about $600 million, accounting for more than half of the island’s government revenue. Greenland is also strategically located and holds significant reserves of oil, natural gas, and minerals critical to high-tech industries.

Trump slaps tariffs on Denmark, EU countries

Trump on Saturday announced sweeping tariffs on Denmark and several European nations, explicitly linking the move to Greenland. Starting on February 1st, 2026, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland will be charged a 10% Tariff on all goods sent to the United States, Trump said.

“On June 1st, 2026, the Tariff will be increased to 25%. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland,” he added.