In the late 19th and early 20th centuries, the United States' attention turned towards expanding its influence in the Caribbean. On October 24, 1900, the U.S. government officially announced plans to purchase the Danish West Indies for $7 million. The islands, particularly Saint Thomas, Saint John, and Saint Croix, were viewed as strategically important due to their geographic location in relation to the Panama Canal project and the broader context of burgeoning American imperialism. The acquisition was part of a larger trend of the U.S. moving away from isolationism towards a more interventionist foreign policy. The islands had been a focal point for various European powers, and the U.S. aimed to secure its interests before rivals like Germany and Britain could establish greater control.

Negotiations for the purchase had been ongoing for several years, with initial discussions beginning as early as the 1870s. The motivation for the acquisition stemmed from both economic and military considerations, with the U.S. recognizing the commercial potential of the islands and their importance as naval bases. The sale was finalized later in 1917 when the U.S. officially took possession of the islands. This transaction was significant not only for its immediate geopolitical implications but also for the eventual integration of the islands into U.S. territories, impacting the lives of the inhabitants and shaping Caribbean-American relations for decades to come.