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Trump-class battleships could come with a $275 billion price tag

(CNN) — The Trump administration’s plan for the US Navy to build its largest battleships since World War II comes with a whopping price tag of $275 billion, and US shipyards may not have the capacity to build them, a new report from the Congressional Budget Office says.

Each of the 15 nuclear-powered surface combatants will cost more than $18 billion, putting them in the range of the Navy’s Ford-class supercarriers, to date the most expensive naval vessels ever built.

The huge cost of the battleships, dubbed the “Trump-class,” is driving the Navy’s total procurement budget for surface combatants, which also include destroyers and frigates, to increase by more than two-thirds – from $11 billion in 2025 to $18 billion in 2027, the CBO report says.

The administration announced the battleships last December, with the president saying they would be fitted with “guns and missiles at the highest level,” hypersonic weapons, electric rail guns, cruise missiles and the “most sophisticated lasers in the world.”

Subsequently, the Navy has said the battleships would carry nuclear-tipped cruise missiles, making them the most powerful vessels in the US arsenal after its ballistic-missile submarines.

In releasing its 2027 shipbuilding plan in May, the Navy said it planned to acquire 15 of the 35,000-ton displacement battleships between 2028 and 2056.

The CBO said the first of those ships would cost $23.4 billion, with subsequent ones at $18 billion.

That’s a substantial increase in cost per ship, which was $15.1 billion for the first and $10.2 billion for the second and third versions, according to the CBO report. But the report notes the original estimate was for a conventionally powered ship, not the nuclear-powered version.

In comparison to other shipbuilding programs, the battleships would rank near the top in cost.

For instance, the USS Gerald R Ford, the most modern of the US Navy’s aircraft carriers, which was commissioned in 2017, cost $13.3 billion. Newer versions of the Ford class are expected to cost around $22 billion, the CBO report says. Upcoming Columbia-class ballistic-missile submarines come with a price tag of $10 billion apiece.

Shipyard capacity troubles

Money isn’t the only variable in the battleship plan. America’s shipyards might not be able to handle the work, the CBO report says.

The new battleships would be more than three-and-a-half times the size of the Navy’s Arleigh Burke-class guided-missile destroyers, which dominate US surface combatant construction now.

“By 2035, the Navy’s … plan would more than double the tonnage of large surface combatants that shipbuilders would need to produce… Accommodating such a sizable increase in the production of large surface combatants could be a challenge for the shipbuilding industry,” the CBO says.

It’s also a shipbuilding industry that’s been prone to delays and cost overruns.

In 2025, then-Navy Secretary John Phelan told Congress the best Navy shipbuilding program was six months behind schedule and 57% over budget.

“All of our programs are a mess,” he testified.

The CBO report says the two key builders of surface combatants, Bath Iron Works, in Maine, or Ingalls Shipbuilding, in Mississippi, are both “facing challenges in building destroyers on schedule.”

Deliveries of Arleigh Burke-class destroyers are delayed an average of five years, it says.

But while those two shipyards have been the only builders of US surface combatants for four decades, they don’t have the capacity to build nuclear-powered ships, the CBO report says.

Navy officials said assembly would fall to Newport News Shipbuilding in Virginia, where aircraft carriers and some submarines are made. But the CBO report raises questions about how building battleships at Newport News would affect those other programs that are already running into delays.

The report finally notes the how a building a new class of ships from scratch taxes the entire shipbuilding industry, noting the “steep learning curve” involved.

“Even shipyards that already build Navy ships would face challenges in designing and building the first ship of a new class. Lead ships in Navy shipbuilding almost always take longer to build and cost more than initially estimated,” it concluded.

Even if all the building challenges can be overcome, many analysts question whether money spent on battleships would be well-spent at a time when low-cost drones are increasingly effective in naval warfare.

“Does it make sense to put so much expensive weaponry and so many sailors on a single, potentially vulnerable platform?” retired Adm. James Stavridis wrote in a January op-ed for Bloomberg.

“Given today’s drone swarms, stealthy submarines, hypersonic missiles, advanced torpedoes and offensive cyberweapons, putting lots of eggs in a handful of big baskets doesn’t make much sense,” Stavridis wrote.

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Asia’s wild AI frenzy stock swings ignite and destroy dreams of getting rich

Seoul (CNN) — Jennifer Ke, a 35-year-old working in operations at a cryptocurrency firm, never paid much attention to Taiwan’s stock market.But her colleagues were constantly discussing their latest stock trades. One boasted of making at least one million Taiwanese dollars, or about $31,000, on a single stock.Then, over dinner with a friend in April, Ke confessed she was constantly thinking about ways to boost her income.“He told me, ‘Oh, you should just invest in stocks,’” Ke recalled. “I started to think that, ‘Okay, this might be the opportunity.’”She wasn’t expecting to become a millionaire overnight. But with rising inflation and stagnant wages, she worried that an office job alone wouldn’t earn her enough money to live and retire comfortably.Soon after that conversation, she began adding individual stocks to her limited portfolio of market funds and cryptocurrency.She’s far from alone.Across Asia, thousands of first-time investors have recently piled in to stock markets, hoping to cash in on the massive tech boom that boosted indexes in Taiwan, South Korea and Japan to record highs earlier this year.A surge of spending on data centers and AI is leading to unprecedented profits for companies that supply semiconductors: Asia’s chipmaking giants Taiwan Semiconductor Manufacturing Company, Samsung Electronics and SK Hynix, have gained more than 50%, 100% and 150% respectively this year as US AI behemoths like Nvidia race to secure more chips.Samsung said semiconductor profits increased more than 250-fold in the second quarter, while its rival SK Hynix also reported its operating profits had reached all-time highs.As share prices have soared, newcomers like Ke are pouring in. According to the Taiwan Stock Exchange, new trading accounts reached a record high in March in monthly data since 2022. Meanwhile, in South Korea, retail investors are borrowing money at record levels to purchase stocks, data from the Korea Financial Investment Association showed.But as dreams of getting rich have grown, so have the dangers of losing it all.Tech stocks in Asia and the United States have swung wildly in recent weeks, at times wiping out billions of dollars as investors question whether the AI boom can justify the sky-high valuations.With Taiwanese investors also borrowing near record levels, downturns could easily cause panic and forced selling, compounding losses and increasing the potential for a major market crash, said Chung San-Lin, a finance professor at National Taiwan University.“When the market is very hot, many people want to become rich in a very short time,” he said. “They even quit their jobs to be full-time investors. I don’t think this is a good situation.”A source of hopeAs her stocks rose, Ke began checking the market every day. But after the recent market tumble, she became more reluctant to open her stock trading app for fear of being faced with losses.Still, she said she plans to continue investing any spare money into Taiwanese stocks, and has been encouraged by the gains that have outpaced her holdings in broad market funds or cryptocurrency.“I’m just hoping that I can get part of my income from investment,” she said. “Relying on salary, you’ll feel a lot of pressure if you only have one source of income.”Her sentiment echoes that of many Taiwanese who have complained about slow wage growth and unaffordable housing prices, even as the economy has notched record quarterly growth of more than 14% earlier this year.AI is exacerbating a similar economic fissure in South Korea. With semiconductor exports surging, workers at the nation’s top chipmakers have secured bonuses of about half a million dollars, or more. Now labor unions in other industries are also demanding more pay.Worried about income inequality, government officials have floated the idea of a “citizen dividend” or public fund in order to redistribute profits from AI to the masses. But the popularity of stock trading has exploded this year as a quicker means to close the gap.“There’s an old saying in Korea: if your relative bought some land, you will get a stomachache,” said Jung In Yun, founder and CEO of Fibonacci Asset Management Global, who oversees funds in South Korea and Singapore. “That kind of group mentality, where they constantly compare themselves with one another, facilitated this wave of retail investors coming into the market.”South Koreans have traditionally favored investing in real estate over the stock market. But those who missed the housing upswing in the 2010s suddenly felt like they were falling behind as home ownership shot out of reach, said Yun.To compensate, Koreans in their 20s and 30s turned to cryptocurrency as bitcoin prices began to soar, he said, but many lost money trading the volatile asset class. Now, as South Korean stocks have skyrocketed, retail investors see a new way to reverse their fortunes: in the form of the nation’s two most respected corporations, Yun said.“Now, there’s hope,” he said. “People feel like, ‘You know what, I might not have done well in the bitcoin rally, but I might very well this time, in Samsung and SK Hynix.’”In May, South Korea launched single-stock leveraged exchange-traded funds, or ETFs, a product that has fueled the retail trading frenzy by enabling investors to double profits – or losses – on a single trade. However, using credit to buy stocks means that when prices fall, those without the cash to cover their losses are quickly pushed out of their positions, and left with debt to pay.When South Korea’s stock market plummeted last month by more than 40% from its June high, Yun said data suggested that many traders who were using leverage to try and multiply returns were wiped out.“Most of the retail investors who got in recently, they’re bleeding,” Yun said. “This is how it ends. When there isn’t enough money left in their pocket, they stop.”‘I became completely addicted’Four years ago, 35-year-old Choi Eun-chong was worried that he would never be able to afford a home in South Korea’s capital city.So the professional bodybuilder, now 39, started putting some of his savings into popular US tech stocks — names like Google, Apple and Nvidia. He had heard of other people who had made millions off the stock market, but he wanted to start small.“Hearing those stories made me think, ‘If I get really lucky, maybe I could buy a house in Seoul before I’m in my late 30s or 40s,’” he said.The next year, he invested all of his income from his YouTube channel. By 2025, he had doubled his money. That emboldened him to take bigger risks. He bought leveraged shares of Tesla and Palantir Technologies to double his returns. He also began investing in Korean stocks. One trade tripled his money in just a few days, netting him about $140,000, he recalled.“I thought, ‘This is my chance to make some really big money!’” Choi said. “I became completely addicted to the dopamine rush of watching the numbers in my account, the money, the figures.”He started buying friends gifts and treating them to meals, telling them about how well his trades were doing. Then, last summer, his stocks plummeted, and he lost half his money in one day. While the sudden loss shook him, he figured he could still make it all back. By the end of the year, he was down 600 million won, or about $410,000.Even then, he couldn’t stop. Between January and March of this year, he lost about another $68,000, he said. He struggled to sleep or control his emotions. He didn’t tell anyone what happened and started avoiding his family.He said he held shares of Samsung and SK Hynix briefly, but sold them before they made him much profit. Now, everyone seems to be talking about Korean stocks.“I see so many people in their 20s and 30s buying at peak prices because of FOMO,” he said. “If stocks are rising and people are making money, that’s wonderful. But I’m someone who lost everything, so I can’t help thinking that one day things could shift.”Last month, he came clean to his parents and shared his story on his YouTube channel. The 15-minute video, which garnered more than half a million views, resonated with others who had also lost money, anonymously detailing their own debts in thousands of comments. He said some sent him private messages, thanking him for his candor.“I lost the 300 million won I spent 13 years saving, and now I have 50 million won in debt,” one person lamented online.“I’m in my early 30s and I’ve lost everything I had. I’m now more than 70 million won in debt. For the first time in my life, I felt like giving up,” another wrote. “But I’m trying to pull myself back together.”Volatility goes globalThe AI boom and the retail investors chasing it have turned South Korea, once an overlooked corner of the Asia market, into a must-watch bellwether for the global tech industry. As retail traders have exacerbated volatility in recent months, the effects have been felt as far as the US. And the direction of Asian equities has come to rely increasingly on a few big names.TSMC, which manufactures the majority of the world’s most advanced chips, accounted for about 42% of the Taiwan Stock Exchange as of June. The market valuation of Samsung and SK Hynix together make up more than 50% of South Korea’s Kospi index.The connection between US and Asia markets grew stronger last month after SK Hynix started trading on the Nasdaq, in a record $26.5 billion foreign listing. A US-traded leveraged ETF tracking the company soon followed.“It’s become a 24-hour cycle,” said Peter Kim, global investment strategist at KB Financial Group. “And retail investors, they want to be able to trade these things anytime they want.”Over the past few years, South Korea has made regulatory changes to court foreign investors and boost its domestic stock market. The introduction of single-stock leveraged ETFs, which has trailed similar products tracking Korean stocks in Hong Kong and the UK, turbocharged the trading activity sparked by the memory chip shortage.However, Kim said the government likely underestimated the risk appetite of the nation’s retail investors. Before they piled in to the Kospi, South Korean traders had proven to be a formidable force in US stocks and cryptocurrency, he said.“If they like it, they just go for it. You cannot stand in the way. A lot of hedge funds in the past got wiped out fighting that retail rally,” he said.Now, lawmakers, who have since derided the stock market as a “casino,” are trying to clamp down on speculation, by raising the minimum retail cash deposit for leveraged ETFs and suspending new listings. South Korea’s finance minister has apologized for launching the riskier products without careful consideration.You Zih-yi, a 20-year-old economics major at Soochow University in Taipei, has begun checking South Korea’s market in the mornings, particularly SK Hynix and leveraged ETFs, for guidance on how Taiwanese stocks might move.Five years ago, she started buying ETFs that track the broader Taiwan market but shifted more of her money into individual stocks last year, mostly in AI, which have since grown to about 80% of her holdings.She said the recent buzz in Taiwan’s stock market has also prompted some former high school classmates to get into stock trading, while older family members, who have long been conservative investors in the stock market, have begun touting successful trades.“They’ll say, ‘I bought this stock recently and earned a profit,’” she said. “Taiwanese people really like to share when they’ve made money.”The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
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