The recent statements of President Trump on the annexation of Canada, Greenland and the Panama Canal need to be analysed. He might not be serious about Gaza but he is trying to distract his rivals at home and abroad.

Trump seems to remember Friedrich Engels’s words: “In 10 years, this sleepy Canada will be ripe for annexation…” when he asked Canada to be the 51st state of the USA. His ambitions to enhance US global influence are evident in his pronunciations of controlling the Panama Canal, buying out Greenland, and developing the Gaza Strip as a Luxury Resort. 

At face value, the above declarations may seem wild, but if one attempts to decipher the logic behind them, they start making sense—even though undemocratically. Therefore, it would be important for us to understand Trump’s logic behind such moves, however weird they may sound. 

Canada

The nominal (current) Gross Domestic Product (GDP) of Canada is $2,142,470,000,000 (USD) as per 2023 estimates. Its GDP per Capita, with a population of 39,299,105 people has been steady at $45,373 in 2023. With an area of 10 Min sq km, Canada has long ranked among the world leaders in the production of uranium, zinc, nickel, potash, asbestos, sulfur, cadmium, and titanium. It is also a major producer of iron ore, coal, petroleum, gold, copper, silver, lead, and many ferroalloys. The technological and industrial potential of Canada encompasses areas of transportation, communication, energy, materials, public works, public services (health care), domestic/consumer and defence technologies including Hydrogen Fuel Cell Technologies.

Keeping the above in mind, Trump said that he was serious about wanting Canada to become the 51st state of the US. He opined that Canada would be much better off being the 51st state because the US loses $200 billion a year, through products and commodities trade with Canada. He emphasized that the trade gap in goods had ballooned in recent years to $72 billion in 2023, which needs to be reduced substantially. 

Canada is not happy about it, but its dependence on the USA restrains Canada from drastic retaliation. The seriousness of the Problem would be evident from Trump’s words when he said that Canada has long been the U.S.’ closest ally but it is not viable as a country, without US trade, and that the founding NATO member can no longer depend on the U.S. for military protection. It’s a grave situation for Canada.  What will be Canda’s real fate, needs to be watched. 

Panama Canal

The Panama Canal is a vital waterway that handles roughly 6% of the world’s maritime trade. Since its opening in 1914, the canal revolutionized maritime shipping, shortening journeys by avoiding the need for traversing the South African Cape of Good Hope, and the Straights of Magellan, a narrow passage on the tip of South America, between the Atlantic and Pacific Oceans, cutting costs as well as environmental damage. This critical artery of global trade has once again become the centre of geopolitical tension. 

Trump has threatened to demand the canal’s return to U.S. control, citing concerns over its management, strategic importance to America, and its significance for US national security. Approximately 40% of U.S. container traffic utilizes the canal annually, For statistics, in 2021, more than 73% of all ships passing through the canal were heading to or coming from U.S. ports. The canal whose construction was a result of a monumental construction effort led by the United States, was handed over to Panamanian control in 1999 under the Torrijos-Carter Treaties. These Carter-era treaties have been a longstanding point of contention for the US which sees the transfer as a strategic error. The issue has gained greater traction now. Further developments need to be watched. 

Green Land

Greenland, the world’s largest island, whose 80% of its territory is covered by ice, is located in the Arctic. It is also the most sparsely populated territory, with about 56,000 people – mostly indigenous Inuit- living there. It is an autonomous territory of Denmark, which houses Danish and US military bases also.

The US has long maintained a security interest in Greenland, In 1951, a defence agreement with Denmark granted the US a significant role in the defence of the territory, including the right to build and maintain military bases. The Pituffik Space Base, formerly known as Thule Air Base, has been one of the important, operated by the US since culmination of the World War II.  

With China and Russia building up their Arctic military capabilities in recent years, the importance of Greenland has gone up for the US. The US also understands that if Russia were to launch missiles towards the US, the shortest route for nuclear weapons would be via the North Pole and Greenland. That’s why the Pituffik Space Base is immensely important in defending the US. Trump has clearly said that control of Greenland was essential for both national and international security.

Trump is also interested in controlling the mining potential across Greenland’s vast landmass, especially the rare earth minerals in the south. Trump has proposed a buy-out the Greenland. The Danes are struggling for an appropriate response to Trump’s Greenland threat. What would happen in the future needs to be watched for? 

Gaza Strip

Trump has proposed that the United States take over and ownership of the Gaza Strip, suggesting long-term control, after settling the ongoing Israel-Hamas conflict. His statement came during a press conference with Israeli Prime Minister Benjamin Netanyahu at the White House on 04 Feb 2025, where Trump emphasized the need for a new approach to Gaza’s future. Since that announcement, the Trump administration has sent mixed signals about the plan. While White House press secretary Karoline Leavitt claimed that Palestinian displacement would be temporary and that no US troops or funding would be involved in Gaza, Trump appeared to contradict that when he said that Palestinians would not return to Gaza because they would have much better housing, maybe at a permanent place created for them.

Trump’s latest plan portrays Gaza in terms of its real estate potential, as the ‘Riviera of the Middle East, discarding the humanitarian or political angles.  Trump has since doubled down and has suggested that Palestinians wouldn’t be allowed to return to Gaza, to ensure the Strip’s development. It’s a reminder that for Trump and his family, the Middle East is as much a business interest as anything else.  Some Middle Eastern countries are not happy about this. What the future will hold for the Gaza Strip needs to be watched for. 

It is evident from the above that Trump has his logic for the US’s control over the areas mentioned above, even though it goes against the US-propagated democratic principles.  

Title image courtesy: AP News

Disclaimer: The views and opinions expressed by the author do not necessarily reflect the views of the Government of India and Defence Research and Studies

Article Courtesy: Maharastra Times