The Strait of Hormuz, beyond the many issues it highlighted, revealed a bitter truth about the US Navy and its recent failures. What exactly has occurred? Significant pressure will now be exerted on the American shipbuilding industry and Congress to approve funding for the "Gold Fleet Plan" that the Americans desperately require. Although it is often said that the United States possesses the most powerful Navy in the world, the fact remains that this is due to tonnage rather than the sheer number of hulls.
From 6,768 warships to 250 active vessels
At its peak during World War II, the US Navy reportedly consisted of 6,768 ships. Today, however, that number stands at approximately 400, including reserves. There are only about 250 active ships, including 11 nuclear-powered aircraft carriers, roughly 70 submarines, about 90 destroyers and cruisers, and several amphibious assault ships.
China has 1,015 warships—the most in the world
In contrast, China is reported to have the largest number of vessels, totaling 1,015 between the People's Liberation Army Navy (PLAN) and the Chinese Coast Guard. Of course, naval strength is often measured by a ship's "displacement," referring to the weight of water it displaces, which equals the actual weight of the ship and everything on board. By this metric, the world's top five naval powers are the United States, China, Russia, Japan, and India, in that order. With a displacement of 8,265,799 tons, the US significantly outweighs China (3,192,411), Russia (1,426,539), Japan (798,062), and India (631,989).
Many US ships ready for decommissioning
Many of their existing vessels are aging and approaching the end of their service life. For example, the USS Nimitz (CVN-68), the oldest active nuclear-powered aircraft carrier in the US Navy, has had its service life extended by approximately 10 months to March 2027. Originally scheduled to begin decommissioning in May 2026, the 51-year-old warship will remain in service to avoid a gap in the required 11-carrier fleet while awaiting the delivery of the USS John F. Kennedy (CVN-79).
China the great rival
Security analysts in the US agree that the Navy needs more ships to counter the rapid, large-scale naval expansion by competitors like China, which threatens maritime supremacy in the Indo-Pacific. The Middle East, incidentally, falls within this strategic zone. In any case, to remain the world's leading military power, a larger US Navy is considered vital. In this context, Trump announced the concept of the Gold Fleet on December 22, featuring a new "battleship" with firepower "100 times greater than anything ever built."
The goal for 20 new battleships
These planned battleships will be armed with 128 MK-41 vertical launch system cells, 12 Prompt Strike conventional long-range hypersonic missiles, an electromagnetic railgun, five-inch conventional guns, and will be protected by AN/SPY-6 radar. Trump has proposed a name for this vessel—USS Defiant—and it will include a suite of weapons, including energy weapons yet to be developed and anti-drone defense systems. Trump aims to acquire 20 such battleships, which would cost between $15 and $22 billion for the lead ship and $9 billion each for subsequent units once production is stabilized. The battleship is projected to have a displacement of approximately 35,000 tons. The "Gold Fleet" plan is a general term for reshaping the size and mix of the Navy's future fleet, including unmanned vesselsoperating alongside manned ships, Ford-class carriers, Virginia-class attack submarines, and Columbia-class ballistic missile submarines.
€65.8 billion for the shipbuilding industry
In this framework, the Pentagon's budget proposal for fiscal year 2027 requests $65.8 billion for shipbuilding, marking the highest investment since 1962. This funding, aimed at purchasing 34 new combat and support vessels, underscores a major push to expand naval power and supports the goal of a 390-ship fleet, addressing industrial base constraints and increasing competition. To achieve what it calls the "Restoration of America’s Maritime Sovereignty," the Trump administration says it has pursued a "whole-of-government and whole-of-nation approach to recapitalize the maritime industrial base strategically."
Contested waters
The rationale for the 2027 budget proposals states: "As waters around the world become increasingly contested, it is imperative that the United States is able to effectively provide the various naval platforms needed, including both combat forces and auxiliary vessels, to ensure maritime domain awareness and deterrence." Key points in the proposals include the need for 8 combat ships and 16 non-combat ships, with funding for major platforms such as two Virginia-class attack submarines, one Columbia-class ballistic missile vessel, one FF(X) frigate, one Arleigh Burke-class destroyer, one San Antonio-class amphibious transport dock, one America-class amphibious assault ship, and six Megan McClung-class medium landing ships.
A workforce crisis
The problem is further exacerbated by workforce challenges. There are not enough workers to build new ships in the shipyards. This challenge has been acknowledged by the Secretary of the Navy, who stated that American shipyards will need 250,000 additional workers in the near future. "Systems don't build ships. People build them," but with a quarter of the shipyard workforce eligible for retirement within five years, shipbuilders and suppliers will need to hire approximately 250,000 skilled workers over the next decade to meet demand.
The Gold Fleet and artificial intelligence
To implement the Gold Fleet strategy, the Trump administration is considering the Navy's adoption of "Ship OS," a $448 million artificial intelligence operating system designed to modernize and accelerate shipbuilding production. This initiative seeks to drastically reduce production times, improve supply chain visibility, and address critical delays in naval construction.
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