President Donald Trump reversed the US position in January 2026, calling the deal an "act of great stupidity" and linking it to his own territorial ambitions for Greenland . US opposition effectively stalled the legislation needed to finalize the transfer, and by April 2026 the deal was in limbo with no path to ratification before the end of the parliamentary session
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The reported US proposal would cut the UK out of the equation entirely by negotiating a direct purchase agreement with Mauritius . Because the UK has already agreed to cede sovereignty to Mauritius, a US-Mauritius deal would give the United States full control over the territory—including the Diego Garcia base—without needing to navigate the UK's stalled legislative process
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The plan is one of several options being drafted by the White House as an alternative to British Prime Minister Keir Starmer's stalled cession plan .
Diego Garcia is arguably one of the most strategically valuable military outposts on the planet. The joint US-UK base on the atoll has been operating since the 1970s and serves as the backbone of American power projection across the Indian Ocean region .
The Chagos purchase proposal fits a broader pattern in the Trump administration's approach to territorial expansion.
President Trump proposed buying Greenland from Denmark in 2019, an offer that was categorically refused . During his second term, that ambition escalated: the administration threatened tariffs and military force to annex the Danish autonomous territory, triggering an international diplomatic crisis
. Trump eventually stepped back in January 2026, pledging not to use force or tariffs
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Just six months later, the White House was reportedly drafting a plan to buy the Chagos Islands. Reporters have framed this as a pivot after the Greenland push "ended in failure"—a smaller, more achievable territorial purchase pursued through financial transaction rather than coercion .
The proposal has not been confirmed by official US sources, and the White House and UK Foreign Office did not immediately respond to requests for comment . Until an official offer is made—or the White House confirms the plan—the future of the Chagos Islands remains locked in one of the most geopolitically sensitive sovereignty disputes in the Indian Ocean.
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