Secretary of State Marco Rubio says President Donald Trump’s desire to acquire Greenland and retake control of the Panama Canal is driven by legitimate national security interests stemming from growing concerns about Chinese activity and influence in the Arctic and in Latin America.

The secretary of State said purchasing the Danish territory is important to the country’s national interests in the Arctic.

Manufacturers from Asia, Europe and elsewhere have poured billions into North American supply chains that could be hit by new taxes on Mexico, Canada and China.

Trump’s tariffs could upend world trade and prompt domestic production. In recent months, plenty of business executives have said they were taking a wait-and-see approach to U.S. President Donald Trump ‘s broad threats of tariffs.