Gresser in the Financial Post: Which states stand to suffer most in escalated U.S.-Canada trade war?

[…]

“Michigan would probably be the single state hit hardest because the auto industry is so important to them economically and psychologically,” said Ed Gresser, vice president at the U.S.-based Progressive Policy Institute think tank. “And Michigan is probably the state most deeply integrated with Canada.”

[…]

Gresser said the impact of counter-tariffs could be more profound on smaller states like Iowa, which exports nearly US$2.5 billion in farm and construction equipment every year and sends 38 per cent of that to Canada.

“Smaller states are often more specialized,” Gresser said. “When something goes wrong for a particular company in a small state, it has real emotional reverberations … if it’s in California or Texas, it may be more like a particular city or a particular region (that is affected).”

[…]

Read more in the Financial Post

New World screwworms arrived in Texas this summer, for the first time since 1976

New World screwworms arrived in Texas this summer, for the first time since 1976

THE NUMBERS: U.S. invasive-species agency staffing, in FTEs* –

      FY2025       FY2026         FY2027 request
National Marine Fisheries Service 3,089 2,441 1,806
Animal and Plant Health Inspection Service 8,462 8,189 8,129
U.S. Fish and Wildlife Service 8,759 7,784 5,861
U.S. Geological Service 7,718 6,696 4,736
National Park Service 18,541 16,039 13,598

* “Full-time equivalent employees,” the standard measure of agency staffing. Data from agency budget justifications; links below.

WHAT THEY MEAN: 

Since the early-June sighting of a New World screwworm in Zavala, TX — America’s first since 1976 — the bugs have turned up in 16 Texas counties and one New Mexico site. A gross but to-the-point look at this unpleasant insect, from the Centers for Disease Control:

“The New World screwworm (NWS), or Cochliomyia hominivorax, is species of parasitic fly that completes part of its lifecycle by feeding on the tissue or flesh of warm-blooded animals and people. NWS flies are attracted to wounds and body openings like the nose, eyes, ears, and mouth, where they lay eggs. The eggs hatch into maggots (larvae) that eat live tissue, causing a worsening, often painful, and foul-smelling wound.  NWS is typically found in South America and parts of the Caribbean. However, the fly has steadily moved northward from South America through every country in Central America, Mexico, and the United States since 2023.”

Pulling back a bit: If they’re now endemic to the U.S., screwworms would be one among 6,500 “invasive species” resident in North America — that is, animals, plants, fungi, microorganisms, etc., arriving in the continent since European settlement in the 1500s. (The native-species count is about 250,000.) Some invaders — say, feral horses — are benign; some, like indoor centipedes, are harmless even though creepy and annoying. Others, like the Burmese pythons in Florida’s wetlands or Asiatic and European earthworms in the Minnesota woods, pose risk to habitat and native wildlife. And a few, like the zebra mussel in the Great Lakes and the screwworm, threaten the economy, public health, or both.

What can be done about them? Some useful international agreements help stop new ones from getting here. As an example, the 2017 International Ballast Convention requires commercial vessels to ditch ballast water in mid-ocean to prevent transcontinental movements of shallow-water clams, shrimp, mussels, seaweed, and fish.

Extirpating invaders after arrival is much harder. Referring to the tens or even hundreds of thousands of Florida pythons, the U.S. Geological Survey sadly concedes that “the odds of eradicating an introduced population of reptiles once it has spread across a large area are very low.” But “very low’ isn’t the same as “impossible” — the New World screwworm itself, in fact, was once a success story, eliminated from the U.S. in 1966 by the release of sterilized male flies in infested zones. And even if eradication is impossible, “containment” is a lot better than “uncontrolled spread.”

All three options — prevention, eradication, containment — require investment in science and human talent in the field. That’s been the job of a battery of high-performance U.S. scientific agencies — the USGS and the Fish and Wildlife Service on remote lands and waterways; the National Marine Fisheries Service in seaports and coastal waters; the Animal and Plant Health Inspection Service at airports and border crossing-points; the National Park Service — who do their best to stop invaders at the border, identify new populations, and slow them down once they’ve arrived.

Disinvestment in science and human talent — the trend of the last two years — means more invaders will get through, fewer new populations will be caught early, and new arrivals will do more harm. The Trump administration’s ill-starred “DOGE” experiment last year cut the combined APHIS, NMFS, USGS, and FWS staff by nearly 5000 (from a base just above 28,000), with an especially high toll on young talent. This year’s parent-agency budgets envision cutting 3,360 more positions. The larger National Park Service is down about 2,000 (from 18,000), and the administration hopes to scrap 2,920 more. Local-level impact ranges from scaled-back inspection of incoming cargo at Los Angeles ports and the proposed cancellation of a planned Illinois barrier against Asian carp entry to Lake Michigan, to closure of a Flathead Valley (Montana) U.S. Geological Survey research program on zebra mussels.

Altogether, the U.S. government has diminished scientific capacity, fewer scientists, and less investment in inspection and infrastructure than it had in the summer of 2024. Budgeting proposals suggest continued DOGE-like staff cuts and general bias against the “discretionary spending” budgets scientific agencies need to fulfil their missions and recruit young talent. Against this backdrop, this summer’s Texas screwworms (like, in similar contexts, Pennsylvania’s measles-associated deaths and the spring’s lettuce-borne Cyclospora outbreak) seem less “an unfortunate specific incident” and more “a sign of what’s to come.”

FURTHER READING

Policy overview:

U.S. government invasive species gateway.

Doing their best in adversity: Invasive species policy summaries from the U.S. Geological Survey, the Fish and Wildlife Service, the National Marine Fisheries ServiceNational Park Service, and Animal and Plant Health Inspection Service.

The International Maritime Bureau explains the International Ballast Convention.

Screwworms:

From APHIS, a description of the fly & the larval worm.

Via CDC, a map of New World screwworm “infested zones” in Texas.

New Mexico’s Department of Agriculture hopes to stop the spread.

Agency staffing:

Animal and Plant Health Inspection Service: FY2025 and FY2027 budget justifications. This year’s requests is down by 60 staff. (More technically, per typical budget usage, 45 “FTE,” full-time equivalent employees.)

National Marine Fisheries Service: FY2025 and FY2027 budget justifications. The 2027 request is down 635 FTEs.

Fish and Wildlife Service: FY2025 and FY2027 budget justifications, with 484 fewer proposed FTEs.

U.S. Geological Service: FY2025 and FY2027 budget justifications, with 1,960 fewer proposed FTEs.

National Park Service: Budget justifications from FY2010 forward, with a proposed 1,441-FTE cut.

Budget big picture:

U.S. fiscal problems originate in aging, tax policy, health insurance, and interest payments. Less “discretionary” spending cannot solve them. In the specific case of science and medicine, disinvestment in vaccination, food safety, and invasive species control typically brings the opposite fiscal-policy result: tiny savings, then larger remediation bills later on. PPI’s 30-year model budget (2024) explains the looming fiscal crisis and the right way to meet it.

And some more invaders:

Earthworms: The suburban gardener loves to see him/her*; the northern forestry manager reacts with consternation and fear. All earthworms north of the Mason-Dixon line are invaders — the last Ice Age froze off all the locals — and in the woods they’re not benign. From the Minnesota Department of Natural Resources:

“All of the terrestrial earthworms in Minnesota are non-native, invasive species from Europe and Asia.  …  Minnesota’s hardwood forests developed in the absence of earthworms. Without worms, fallen leaves decompose slowly, creating a spongy layer of organic ‘duff’. This duff layer is the natural growing environment for native woodland wildflowers. It also provides habitat for ground-dwelling animals and helps prevent soil erosion. Invading earthworms eat the leaves that create the duff layer and are capable of eliminating it completely. Big trees survive, but many young seedlings perish, along with many ferns and wildflowers.”

The 15 worm species in eastern Canada, New England, New York, and the Midwest, mostly descendants of European worms brought in after the Mayflower landing, are chewing their way through the duff layers of the north woods at about 50 feet per year. The newest, the “Asian jumping worm” (a Korean/Japanese native, present on the West Coast since the 19th century), first turned up in Minnesota in 2006 and reached Wisconsin in 2013. Earthworm basics and advice from Minnesota’s Forestry and Wildlife Extension Service.

* Him/her is the correct pronoun; earthworms are naturally hermaphroditic.

Islands: In Hawaii, 282 of 1100 native species are threatened or endangered.  Hawaii’s Invasive Species Council.

Lakes: Michigan’s Asian carp planning council tries to keep the carp out of the Great Lakes.

Spiders: The University of Georgia tentatively concludes that Joro spiders — very large web-weavers, native to Japan, present in Georgia since 2014 — are proving compatible with local arachnids and insects.

ABOUT ED

Ed Gresser is Vice President and Director for Trade and Global Markets at PPI.

Ed returns to PPI after working for the think tank from 2001-2011. He most recently served as the Assistant U.S. Trade Representative for Trade Policy and Economics at the Office of the United States Trade Representative (USTR). In this position, he led USTR’s economic research unit from 2015-2021, and chaired the 21-agency Trade Policy Staff Committee.

Ed began his career on Capitol Hill before serving USTR as Policy Advisor to USTR Charlene Barshefsky from 1998 to 2001. He then led PPI’s Trade and Global Markets Project from 2001 to 2011. After PPI, he co-founded and directed the independent think tank ProgressiveEconomy until rejoining USTR in 2015. In 2013, the Washington International Trade Association presented him with its Lighthouse Award, awarded annually to an individual or group for significant contributions to trade policy.

Ed is the author of Freedom from Want: American Liberalism and the Global Economy (2007). He has published in a variety of journals and newspapers, and his research has been cited by leading academics and international organizations including the WTO, World Bank, and International Monetary Fund. He is a graduate of Stanford University and holds a Master’s Degree in International Affairs from Columbia Universities and a certificate from the Averell Harriman Institute for Advanced Study of the Soviet Union.

Read the full email and sign up for the Trade Fact of the Week.

Gresser on Times of London Radio: US-Canada Trade War: American Consumers ‘Unsettled’

“Most Americans like Canada, they think Canada is a good trading partner.”

There has been very little controversy concerning the US trading relationship in the past, leaving American consumers “surprised” at the severity of the current trade war, says former Assistant US Trade Representative Ed Gresser.

Ed Gresser was speaking to John Pienaar on Times Radio Drive.

Watch the full interview.

The Trump administration should not get new tariff authority

The Trump administration should not get new tariff authority

THE NUMBERS: U.S. tariff collection on hockey pads, helmets, sticks, pucks & pads –

2025 $40 million
2024 $8 million

WHAT THEY MEAN: 

Assessing the proposed “Lindsey Graham Sanctioning Russia and Ukraine Act” this week, PPI’s experts — Kyiv-based New Ukraine Project Director Tamar Jacoby, Vice President Ed Gresser, National Security Director Danielle Steitz — encourage its effort to strengthen financial sanctions on Russia and limit the ability of its creaky “shadow” fleet of tankers to ferry oil around the world. By contrast, the three pan its tariff measures. As passed by the Senate early this month, these offer the Trump administration a wholly new power to impose tariffs of up to 100% on goods from an uncertain array of countries involved in buying Russian oil or gas, or in some mostly undefined way helping Russian energy get around existing sanctions. (Some explanation below.) PPI comment:

“The bill’s tariff section is unnecessary — the administration already has sanctions power under the International Emergency Economic Powers Act — and dangerous. Unchecked authority to impose new tariffs on vague grounds, after the administration’s extensive and continuing misuse of laws such as Section 301 and Section 232, poses a high risk that Mr. Trump would use it not to pressure Russia but to further harass America’s neighbors and allies, and impose more costs on the American economy.”

The past week’s experience illustrates the point vividly. For quite unclear reasons, the Trump admin. chose last Thursday to detonate a northern-border crisis with Canada, using a never-tested, 97-year-old Hoover administration law (“Section 338”) to impose 50% tariffs on about $20 billion worth of Canadian goods. Having failed to extract concessions, these are now in effect; Canada’s retaliation, targeting an identical amount of American steel, aluminum, seafood, dairy, appliances, and so on, comes after Labor Day.

Setting aside the unquantifiable but likely high strategic/security/etc. cost of alienating a neighbor, and the moral cost of pointlessly picking a fight with a friend, the purely economic shrapnel will hit home. Higher U.S. tariffs mean Americans will pay higher prices for tariffed goods. Higher Canadian tariffs on American goods, since Canada is usually the top buyer of made-in-America manufactured goods and ranks second for farm products, means Canadians will pay more for American goods, likely buy less of them, and U.S. export industries will struggle. Case in point: Canadians buy half of Maine’s lobster catch each year, about 20,000 tons a year, and Tuesday’s Canadian retaliation means they now have to pay a 25% tariff on each crustacean.

Here’s a less obvious example: hockey parents and high school athletic departments in Michigan, Minnesota, Wisconsin, Maine, Vermont, Massachusetts, and other northern tier states should expect some price hikes in hockey gear, and prepare themselves for possible spikes in rink fees. A Hockey News discussion last week is a point of departure:

“New tariffs imposed by American President Donald Trump include hockey sticks and equipment. The result will be members of USA Hockey paying more to play the game, which could slow the sport’s record growth in the USA following double Olympic gold and the PWHL’s [Professional Women’s Hockey League] rise. The new 50% tariffs, which will take effect August 19, just before many hockey teams and leagues begin to hit the ice, will make ice hockey significantly more expensive for youth and families looking to get into the sport in the United States.”

How so? Fitting a teen out for the rink is pricey. Think $200 for skates, $70 for a college-quality carbon-fiber stick, $200 for pads, $100 for gloves, $30 for a bucket of pucks, more for goalies. Rink managers, meanwhile, need expensive machinery to smooth their ice (a Zamboni machine runs from $125,000 to $180,000), keep air circulating at the right temperature, and sharpen players’ skates before games. This means teams have to defray ice-time costs through fees. Maine’s middle-school program charges $345 per player plus $55 for association membership; in Alpena, Michigan,  on Thunder Bay — where median family income is $47,500 — youth hockey fees run from $500 for “mites” to $1,000 for teens.

Under the Congressionally authorized “Harmonized Tariff System”, hockey gear is usually free. Last year’s tariffs on Asian consumer goods (where North American hockey equipment firms like CCM and Bauer do most of their assembly) helped hike equipment prices by about 10%. Canadian gear, still exempted then under the “USMCA” duty-free rules, made up about a fifth of U.S. hockey imports last year. That was $25 million worth of pads, helmets, pucks, and sticks. So at face value, Thursday’s 50% tariff will cost American hockey parents and athletic departments about $12 million. If the crisis escalates to the high-priced products rinks need to run — Zambonis get ambiguous treatment under Mr. Trump’s new tariff order — rink operation costs will spike, ice-time prices will follow them up, and team membership fees will rise with them.

Now back to the Russia sanctions and tariff bill.

As Jacoby, Gresser, and Steitz argue, the proposed sanctions will help, and ought to go ahead. (See Jacoby’s deep-dive piece on sanctions this week in the Washington Monthly.) The bill’s tariff clauses, by contrast, are risky rather than useful. They authorize new tariffs of up to 100% on goods from (a) the top-five buyers of Russian oil, (b) the top-five buyers of Russian gas, and (c) a murkily defined top-five “facilitators of energy sanctions evasion.” Complex accounting for energy purchases, and even less precise definitions of “facilitation,” make this authority easy to redirect onto friends and allies. And as this authority would come as part of a newly passed law, rather than one of the 50-to-100-year-old statutes the administration has exhumed for its tariff decrees to date, any resulting tariffs would likely be legally stronger than those the administration has tried so far.

So: On the tariff matters, the main need is (as Sen. Ron Wyden, D-Ore., and Rep. Linda Sanchez, D-Calif., have proposed) to impose discipline and restore constitutionally appropriate policymaking, by requiring administrations hoping to impose tariffs to get Congressional votes of approval before they can act. For this particular bill, Congress should at minimum require the same for any use of tariff authority — that is, no tariff would go into effect until Congress had voted to approve it — or scrap the tariff piece altogether.

FURTHER READING

Russia sanctions/tariff bill (1):

Legislation text.

PPI’s Tamar Jacoby, Ed Gresser, and Danielle Steitz approve of new sanctions, pan new tariff authority, and call for speeding up military aid to Ukraine.

And from Kyiv, Jacoby’s in-depth assessment in the Washington Monthly this Monday.

A warning:

Trump admin.’s August tariff decree with 50% tariffs on $20 billion worth of Canadian-made autos and parts, liquor and beer, hockey equipment, machinery, auto parts, etc. For context, U.S. imports of Canadian goods last year totaled $382 billion. The resource side of the trade relationship — fertilizer and energy — is still mostly exempt, except for wood.

Stunned Hockey News staff and readers assess the impact.

Toronto-based BladeTech Hockey explains why high-performance sticks are so expensive. (TL/DR: “materials, manufacturing complexity, R&D amortization, and 2026 tariff impacts.”)

Canada’s retaliation targets American lobsters, air conditioners, cheese, hand tools, steel and cars.
In Lansing, Gov. Whitmer tallies damage-to-date on Michigan inflation and exports.

Last January’s Canadian Broadcasting Corp. report from a worried U.S.-Canada lobster conference.

And alarmed reactions from the Maine political world.

Sanctions/tariff bill (2):

The bill’s sanctions add Russian officials and enterprises to the lists of individuals and industrial sectors covered by financial sanctions; ban U.S. imports of uranium (but not fertilizer, where U.S. imports are running at $200 million a month this year); and ban investment in Russian energy. It isn’t automatic, though, as the bill also allows administrations to waive any of these sanctions.

The tariff piece ‘authorizes’ tariffs of up to 100% on the five countries topping the lists of buyers of Russian gas and Russian oil, and the five countries contributing most (in some vague and undefined way) to energy sanctions evasion. The top three energy buyers are China, India, and Turkey – a running tally from the Finland-based Center for Research on Energy and Clean Air estimates that these three together account for 70% of Russia’s roughly $250 billion in annual energy sales – but the fourth- and fifth-largest buyers aren’t as easy to identify, especially with separate lists for oil and gas. ‘Sanctions evasion’ is not clearly defined, and could be used to target all sorts of countries.

And recommended reading:

Poland’s Institute for International Affairs has some creative thinking on the “shadow fleet” and energy-sanctions policy.

ABOUT ED

Ed Gresser is Vice President and Director for Trade and Global Markets at PPI.

Ed returns to PPI after working for the think tank from 2001-2011. He most recently served as the Assistant U.S. Trade Representative for Trade Policy and Economics at the Office of the United States Trade Representative (USTR). In this position, he led USTR’s economic research unit from 2015-2021, and chaired the 21-agency Trade Policy Staff Committee.

Ed began his career on Capitol Hill before serving USTR as Policy Advisor to USTR Charlene Barshefsky from 1998 to 2001. He then led PPI’s Trade and Global Markets Project from 2001 to 2011. After PPI, he co-founded and directed the independent think tank ProgressiveEconomy until rejoining USTR in 2015. In 2013, the Washington International Trade Association presented him with its Lighthouse Award, awarded annually to an individual or group for significant contributions to trade policy.

Ed is the author of Freedom from Want: American Liberalism and the Global Economy (2007). He has published in a variety of journals and newspapers, and his research has been cited by leading academics and international organizations including the WTO, World Bank, and International Monetary Fund. He is a graduate of Stanford University and holds a Master’s Degree in International Affairs from Columbia Universities and a certificate from the Averell Harriman Institute for Advanced Study of the Soviet Union.

Read the full email and sign up for the Trade Fact of the Week.

PPI: Yes to Stronger Sanctions on Russia and Support for Ukraine; No to Giving the Trump Administration New Tariff Authority

WASHINGTON (August 25, 2026) — Today, Progressive Policy Institute (PPI) experts on Ukraine, trade policy and national security issued the following statement on the Lindsey Graham Sanctioning Russia and Iran Act, applauding the additional financial and energy-market pressure the bill may put on Russia, but criticizing its very broad tariff authority and arguing that it should either be dropped or sharply circumscribed.

PPI’s Kyiv-based New Ukraine Project Director Tamar Jacoby, who offered extensive assessment of the bill in the Washington Monthly, said:

“Nearly five years of war — including a summer of spectacular Ukrainian strikes on Russian oil refineries — have done serious damage to the Russian economy. The US can and should be doing more to help raise the cost for the Kremlin, and the Graham bill makes an important start. Now the House has an opportunity to improve the package by clarifying what Trump can and cannot do to implement it — strengthening the sanctions provisions while limiting the all-but unchecked tariff authority it hands the president.”

PPI Vice President and Director for Trade and Global Markets Ed Gresser said:

“With Russia’s military exhausted from its four-year full-scale invasion of Ukraine, Congress is right to increase economic pressure on Russia and countries supporting it. The bill’s financial and other sanctions are good steps. We can and should go further by banning Russian fertilizer — the U.S.’s major remaining import from Russia, now running at an average of $200 million a month this year. By contrast, the bill’s tariff section is unnecessary — the administration already has sanctions power under the International Emergency Economic Powers Act — and dangerous. Unchecked authority to impose new tariffs on vague grounds, after the administration’s extensive and continuing misuse of laws such as Section 301 and Section 232, poses a high risk that Mr. Trump would use it not to pressure Russia but to further harass America’s neighbors and allies, and impose more costs on the American economy.  Last Thursday’s fiasco with Canada — a totally unnecessary breach with a friendly neighbor, with tariffs likely to cost Americans billions of dollars this fall — is a case in point. If this final bill is to include any tariff authority at all, therefore, the House should at minimum revise it to require a final Congressional vote of approval for any tariff increase on any country.”

PPI Director of National Security Policy Danielle Steitz said:

“The brave citizens of Ukraine have spent more than four years defending their nation from Russia’s illegal invasion, and it is heartening to see the U.S. Congress continue to send clear bipartisan signals of support. However, it is undeniable that President Trump has demonstrated his disregard of congressional intent time and time again, particularly around the topic of support to Ukraine. Just last month it was reported that the Department of Defense will not finish spending the $400 million that Congress authorized for Ukraine military assistance until fiscal year 2029, an unacceptable slow-rolling of aid that has rightly sparked bipartisan criticism on Capitol Hill. Instead of hoping that this time will be different, the House should adopt common-sense guardrails asserting Congress’s tariff powers and making its intent crystal clear: that this legislation’s purpose is to impose costs on Russia and to support Ukraine.”

Background: The Senate passed S. 5025, the Lindsey Graham Sanctioning Russia and Iran Act, on August 6, 2026, and the House of Representatives is preparing to consider it after its return from the August recess. The bill imposes new sanctions on Russian officials, businesses, and financial service providers, bans imports of Russian uranium (though not fertilizer, the largest single U.S. import from Russia). It also provides the Trump administration authority to impose tariffs of up to 100% on goods from three sets of countries: the five largest buyers of Russian oil, the five largest buyers of Russian natural gas, and the five countries most involved in helping Russia in some unspecified way avoid sanctions. With the House vote likely in early fall, PPI experts and Ukraine-watchers argue that while strengthening sanctions on Russia is urgent, the bill’s nearly unlimited tariff authority is unnecessary and invites further abuse by the Trump administration. They urge the House to make significant changes to the tariff section, and tighten U.S. sanctions further, before passage.

Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us at @ppi.

###

Media Contact: Ian O’Keefe – iokeefe@ppionline.org

Gresser in The Wall Street Journal: How Will the New Canadian Tariffs Affect the U.S. Economy?

[…]

Ed Gresser, a former assistant U.S. trade representative now working at the Progressive Policy Institute, said that was clear from the items Canada chose, including lobster and seafood. Half of the lobster caught in Maine goes to Canada, he said, and Maine has an important election this fall that will help determine control of the Senate.

“The states that are most reliant on Canada as an export market are often the northern-tier states—Maine, Michigan, Minnesota, Wisconsin, New Hampshire,” Gresser said. Canada is “trying to show the Republican party that there’s a systemic cost to doing this sort of thing.”

[…]

Read more in The Wall Street Journal

Internet traffic to reach 10 sextillion bytes next year

FACT: Internet traffic to reach 10 sextillion bytes next year.

THE NUMBERS: Information content of seven communications forms –

 

One-paragraph plain-text email  2,000 bytes
One-paragraph email with hypertext  30,000 bytes
Voice call 200,000 bytes
Photograph 2 million bytes
TikTok video 8 million bytes
Movie 1 billion bytes

WHAT THEY MEAN: 

How much information moves around the world? And how does it travel?

Vocabulary first: Internet-watchers count information flow in “bytes,” a term invented by IBM’s Werner Buchholz in 1961. One byte is the amount of information necessary to portray a single character on a computer screen. Each byte in turn is made of eight “bits”, referring to the “binary digits” — 1 or 0 — used in computer code. The eight-bit rule isn’t required by math or physics; Buchholz and his associates just thought the 256 possible eight-bit strings, from 00000000 to 11111111, would be enough to represent all the necessary letters, numerals, mathematical notations, currency signs, and other keyboard characters.

Following Buchholz’s lead, experts at the International Bureau of Weights and Measures have fended off an uncontrolled proliferation of zeros and commas by inventing new words every decade or so. “Petabyte” and “exabyte,” referring to quadrillions and quintillions of bytes, date to 1982. “Zettabyte,” meaning a sextillion bytes, debuted in 1991 — three years before the World Wide Web went live — and is now the one-digit way to record Internet data traffic.

Data traffic: The International Telecommunications Union’s estimates of annual data flow — all the information moving around the world, across borders and within countries — from last year to the launch of the Internet:

2025      7.9400000 zettabytes
2020      3.7000000 zettabytes
2015      0.8700000 zettabytes
2010      0.2400000 zettabytes
2005      0.0300000 zettabytes
2000      0.0010000 zettabytes
1990      0.0000002 zettabytes

The jump from 0.000002 zettabytes in 1990 to 7.94 zettabytes in 2025 represents a 40 million-fold increase in information flow — voice calls, videos, Zoom sessions, movie downloads, gaming, texting, etc. — from the first website posting in 1989 to the present, mirrored by a fall in the cost of moving it around.

How did this happen? Mainly by stringing a few hundred wires under the oceans.

Cables: The commonly used stat — submarine fiber-optic cables carry about 95%, or possibly 99% — of all data traffic seems slightly squishy. NOAA is confident about it, but Telegeography traces its last verification to a 2015 FCC report, and at least 10,000 satellites have launched since then. But experts are at least confident that while the decade’s satellite deployment filled in lots of Internet dead spots — deserts, remote rural areas, ships at sea, planes in the air — cables still carry the vast majority of the bytes. Here’s their evolution:

1956: The first transatlantic telephone cable — a copper wire named “TAT-1” — went live two months after Buchholz’s “byte” coinage. (Earlier cables dated back to 1858, but transmitted telegraph and Morse code only.) In modern terms, TAT-1 could handle 2.3 megabits of data per second, or about 300,000 bytes. In human terms, that meant a maximum of 36 simultaneous voice calls. The cable owners, a U.S./British/Canadian consortium, charged $12 for a three-minute call. Median income that year was $2,432, or $6.70 per day, so a short U.S.-U.K. call would have cost a typical person nearly two days’ pay.

1988: A generation later, the first fiber-optic submarine cable (TAT-8) had a capacity of 560 megabits per second — 100 times its copper ancestor — and could manage 40,000 simultaneous voice calls. This one had 29 joint U.S., British, Canadian, and European owners. They charged $1.00 per minute at off-peak times, and $2 at peak.

2000: At the millennium, TeleGeography’s second annual Submarine Cable Map recorded 100 active fiber-optic cables, with the four-cornered U.S.-to-Japan “Pacific Crossing,” able to move 640 gigabits of data per second, the top performer. Though voice calls were no longer the glamor product, Pacific Crossing could theoretically have managed 10 million voice calls. Transatlantic calls cost about 10 cents per minute.

2010: Unity Submarine, also a Japan-to-U.S. cable, had a 7.7 terabyte capacity — another tenfold jump, equivalent to 175 million phone conversations. In that glum financial-crisis year, Telegraphy counted 406 operating fiber-optic cables. The FCC gave up on tracking international phone costs, since so many were free with Internet service.

2026: There are now 694 cables. Anjana, a Spain-to-South Carolina wire supposed to go live this fall, can carry 480 terabits of information per second. This is equivalent to 7.5 billion simultaneous conversations, easily enough to accommodate all the people in the world, if all they wanted to talk at the same time. Average Internet access cost in the U.S. (allowing, more or less, all the calls you want, no matter how long) is about $80 per month or $2.65 per day. For someone earning the U.S.’ median income of $65,050 per year, or $178 per day, that would be about seven minutes’ worth of income.

Two thoughts:

Physical: A 10,000-kilometer trans-Pacific giant with a top-of-the-line 24 fiber pairs typically is about an inch in diameter, weighs about 100,000 tons, and costs a bit above $500 million. A short one, for example one crossing the English Channel to connect London and Paris, would weigh about 80 tons and cost around $50 million.

Content: As the byte-content of emails, voice calls, and videos suggests, the information flowing over cables and down satellite beams is mainly video. Per Satellite Today, YouTube videos take up 13% of fiber-optic cable traffic, Netflix shows 10%, Facebook messaging 6%, TikTok videos 4%, and everything else 67%.

FURTHER READING

Cables & data flow:

Telegeography’s Submarine Cable Map.

And the ITU’s estimates of Internet data traffic.

Policy:

Trade: The Bureau of Economic Analysis reports that in 2025, American exports of information and communications services, plus “digitally deliverable services” such as entertainment, news, telemedicine, architectural plans, and so on, came to $959 billion — a bit less than half of the $2.2 trillion in goods exports, and 3% of U.S. GDP.

Policy and its growth impact: Last year’s OECD/WTO review of digital data flows, their growth effects, and the impact of regulation concludes that the best approach (at least from a GDP growth point of view) is “free flow of data combined with clear regulatory policies.” A hypothetical zero-regulation approach — no privacy rules, no content moderation, etc. — forfeits trust and leads to a loss of 0.9% of world GDP, while an open Internet with generally agreed-upon regulatory principles adds 1.8%. “Geoeconomic fragmentation,” like zero-reg, costs 0.9% of world GDP; “data autarky,” an extreme version of geoeconomics, yields a financial-crisis-style loss of 4.5%.

People:

Also from the International Telecommunications Union, a count of Internet users over time:

2026      6.1 billion, three-quarters of humanity
2020      4.7 billion people
2015      3 billion people, as Chinese access surges
2010      2 billion people
2005      1 billion, with rich-country access above 50% and middle-income rising fast
2000      0.36 billion, mostly in rich countries
1995     0.05 billion people, most in the United States

Words:

The International Bureau of Weights and Measures is responsible for order-of-magnitude prefixes, and has already prepared for the next round. After “zettabytes” come “yottabytes.” The next two, coined in 2022 and available whenever needed, are “ronnabyte” for 1 octillion bytes and “quettabyte” for a nonillion bytes. Both date to 2022. The prefixes apply universally — tons, meters, liters, etc. The mass of the Earth, for example, is 6 zettatons, and that of the solar system two ronnatons. The Milky Way, whose mass is about a trillion times the solar system’s, will have to wait for three more prefixes.

The Poughkeepsie Journal’s 2019 obit of the unassuming Mr. Buchholz — a Holocaust survivor, pioneer of transistor-based computing, and “byte” inventor.

ABOUT ED

Ed Gresser is Vice President and Director for Trade and Global Markets at PPI.

Ed returns to PPI after working for the think tank from 2001-2011. He most recently served as the Assistant U.S. Trade Representative for Trade Policy and Economics at the Office of the United States Trade Representative (USTR). In this position, he led USTR’s economic research unit from 2015-2021, and chaired the 21-agency Trade Policy Staff Committee.

Ed began his career on Capitol Hill before serving USTR as Policy Advisor to USTR Charlene Barshefsky from 1998 to 2001. He then led PPI’s Trade and Global Markets Project from 2001 to 2011. After PPI, he co-founded and directed the independent think tank ProgressiveEconomy until rejoining USTR in 2015. In 2013, the Washington International Trade Association presented him with its Lighthouse Award, awarded annually to an individual or group for significant contributions to trade policy.

Ed is the author of Freedom from Want: American Liberalism and the Global Economy (2007). He has published in a variety of journals and newspapers, and his research has been cited by leading academics and international organizations including the WTO, World Bank, and International Monetary Fund. He is a graduate of Stanford University and holds a Master’s Degree in International Affairs from Columbia Universities and a certificate from the Averell Harriman Institute for Advanced Study of the Soviet Union.

Read the full email and sign up for the Trade Fact of the Week.

Trump administration trade policies have changed minds

FACT: Trump administration trade policies have changed minds

THE NUMBERS: Two polls, a decade apart –

July 2026, The Argument: “[Do you] support or oppose free trade agreements with other countries?”

   Support    Oppose          Unsure
All respondents 71% 16% 13%
Self-identified Democrats 81% 7% 12%

June 2015, Pew Research Center: “Would the Trans-Pacific Partnership be a good thing or a bad thing for our country?

   Support    Oppose          Unsure
All respondents 49% 29% 21%
Self-identified Democrats 51% 26% 22%

WHAT THEY MEAN: 

Surveying trade findings in The Argument’s most recent poll, Center for New Liberalism co-founder Jeremiah Johnson finds a sea-change:

“[T]he political momentum that led to increased support for protectionism has stopped. Trump’s use of tariffs has been so lawless, so haphazardly implemented, and so offensive to so many of America’s traditional allies that the public has clearly turned against tariffs and back toward free trade.”

Some background on the last decade’s shifting tide to put The Argument’s survey in perspective –

Our early-2025 Trade Fact look at polling found about 60% of Americans disliking the Trump administration’s “IEEPA” tariff decrees on sight, while about 38% liked them. A second look last February, as the Supreme Court prepared to scrap that round of decrees, found about the same. The trade polls released this summer (though a bit fewer in number than last year’s) suggest a somewhat worse opinion. (Cross-tabs: Democrats overwhelmingly negative throughout; early Republican support weakened a bit; political independents moving from generally negative with a lot of ‘uncertains’” to very negative.) Two samples:

                      CBS    “Approve” of tariffs      “Disapprove” of tariffs
July 2026 36% 64%
April 2025 42% 58%

 

Economist    “Approve” of tariffs      “Disapprove” of tariffs
July 2026 29%                             58%
April 2025 38%                             54%

 

The Argument’s poll adds something new to these findings, since it asks not only about tariffs but about a hypothetical alternative — “Do [you] support or oppose free trade agreements with other countries?” — and finds a significant change.

The last time the U.S. government engaged in that sort of thing — trade liberalization, lower trade barriers — was about a decade ago. Rowing back across the waters to the polling of that era, opinion on trade agreements was generally positive but mixed. The Pew Center’s June 2015 survey of attitudes towards the Obama administration’s Trans-Pacific Partnership agreement, for example, got this result:

For the U.S., TPP would be good/bad …        Good          Bad       Unsure/Don’t Know
Total 49% 29% 21%
Democrats 51% 26% 22%
Independents 50% 30% 19%
Republicans 43% 34% 23%

 

So among the Americans of 2015, opposition to TPP was a minority position nationally, especially among self-identified Democrats. But it wasn’t a tiny minority, and influential interest groups and NGOs magnified its concerns (or errors) within the political system.

The Americans of 2026, by contrast, have a decade’s experience with elevated tariffs and “postneoliberalism,” and 18 months’ experience with the Depression-style protectionism of Mr. Trump’s second-term tariff decrees. So they have enough to evaluate these policies’ real-world results, and weigh rising prices against the relatively modest Biden-era claims of supply-chain resilience and manufacturing growth through selected “industrial strategies,” and the Trump administration’s more recent, extravagantly hollow promises of “millions and millions” of assembly-line factory jobs, 6% GDP growth, and a “new golden age.” The experience, at least in The Argument’s poll, seems not only to have turned the public against tariffs but dried up opposition to Obama-style trade liberalization:

“I support/oppose new free trade agreements”    Support    Oppose    Unsure
All respondents 71% 16% 13%
Democrats 81% 7% 12%
Independents 66% 12% 22%
Republicans 65% 20% 15%

 

One obvious qualifier on this: TPP was a real thing with lots of specific features to ponder. (And still is, having gone live in 2018 as the “Comprehensive and Progressive Trans-Pacific Partnership Agreement” for 11 Asia-Pacific countries, and added the United Kingdom in 2024.) The Argument’s question, by contrast, is about hypothetical future FTA possibilities without elaboration. So actual FTAs might elicit some more opposition than this polling shows.

But overall, real-world “lived experience” with tariffs and trade barriers, or more jargon-ishly “postneoliberalism” and “economic nationalism”, seems to have had a powerful effect on public opinion. To the extent there was a modest tide of anti-FTA feeling in the 2010s, it seems to have gone out, leaving a few tidepools but no significant opinion reservoirs. The 2015 plurality support for TPP, meanwhile, now looks close to consensus, with Democratic opposition to trade liberalization nearly evaporated and Republican opposition sharply diminished. And the public generally seems to want something very different from what it’s been getting these last few years.

FURTHER READING

PPI’s four principles for response to tariffs and economic isolationism:

  • Defend the Constitution and oppose rule by decree;
  • Connect tariff policy to growth, work, prices and family budgets, and living standards;
  • Stand by America’s neighbors and allies;
  • Offer a positive alternative.

Then and now:

In 2015, Pew sees plurality support for TPP.

In 2026, The Argument finds consensus support for free trade agreements.

And perspectives on the CPTPP from founders JapanSingaporeCanadaAustralia, and Chile, and new member the United Kingdom.

Also then & now:

Trump admin’s April 2, 2025, tariff decree.

Commerce Sec. Lutnick pledges army of “millions and millions” of assembly-line workers in consumer electronics, and more recently predicts 6% GDP growth.

A year later, BLS finds all job growth at a standstill.

… and their colleagues at the Commerce Department’s Bureau of Economic Analysis report 1.5% GDP growth.

ABOUT ED

Ed Gresser is Vice President and Director for Trade and Global Markets at PPI.

Ed returns to PPI after working for the think tank from 2001-2011. He most recently served as the Assistant U.S. Trade Representative for Trade Policy and Economics at the Office of the United States Trade Representative (USTR). In this position, he led USTR’s economic research unit from 2015-2021, and chaired the 21-agency Trade Policy Staff Committee.

Ed began his career on Capitol Hill before serving USTR as Policy Advisor to USTR Charlene Barshefsky from 1998 to 2001. He then led PPI’s Trade and Global Markets Project from 2001 to 2011. After PPI, he co-founded and directed the independent think tank ProgressiveEconomy until rejoining USTR in 2015. In 2013, the Washington International Trade Association presented him with its Lighthouse Award, awarded annually to an individual or group for significant contributions to trade policy.

Ed is the author of Freedom from Want: American Liberalism and the Global Economy (2007). He has published in a variety of journals and newspapers, and his research has been cited by leading academics and international organizations including the WTO, World Bank, and International Monetary Fund. He is a graduate of Stanford University and holds a Master’s Degree in International Affairs from Columbia Universities and a certificate from the Averell Harriman Institute for Advanced Study of the Soviet Union.

Read the full email and sign up for the Trade Fact of the Week.

Tracking a Tariff

On the coast of Connecticut sits the port city of New Haven, sustaining 366 acres of waterfront land regularly engaged in international trade. President Trump’s tariffs spell devastating consequences for the port economy and the many New Haven businesses dependent on it. Mr. Trump’s trade policy has contributed to rising costs, a slowing job market, and supply-chain issues in the town  along with communities all across the country. This paper will examine how tariffs are implemented, where they take effect, and who pays the price at the local level. 

As of summer 2026, though the Trump administration’s IEEPA tariffs have been repealed by the courts and refunds by the CBP are reimbursing importers (without helping consumers), U.S. tariff rates remain far above normal. Nearly all countries have seen baseline rates of 10%, with higher tariff rates on key trading partners. Of the administration’s three remaining tariff authorities, his first invoked section 122 of the Trade Act of 1974, which expired by statute on July 24, 2026. His remaining authorities, sections 232 and 301 of the Trade Act, persist, though the newest “301” tariffs are already facing legal challenges. The 232 decrees impose tariffs on steel at 50%, aluminum 50%, copper 50%, automobiles 25% (EU-origin capped at 15% under a new trade deal), semiconductors 25%, lumber 10%; those under “Section 301” cover most remaining U.S. imports, at 12.5% duty on goods from 46 countries and 10% on another 14, plus additional penalties on Chinese, India, Brazilian, and Canadian goods. These tariffs will tax New Haven residents and average Americans alike.

A look at New Haven:

With an estimated population of ~140,000, New Haven is primarily a college town for Yale University, which employs 7,000 residents. But the city also functions as one of Connecticut’s three deepwater ports (Bridgeport, New London, and New Haven). Of the three, the Port of New Haven sees the most domestic and international commodity traffic in the state. The port consists of seven privately owned terminals, six of which are exclusively used for petroleum products. At 35ft of depth, the port can accommodate ships weighing between 20,000 and 40,000 deadweight tons. The maritime sector creates thousands of jobs in the New Haven metropolitan area, with hundreds of workers at the Terminals in longshore jobs and similar work, and many more indirectly through restaurants, repair shops, and other small enterprises reliant on port business. Additionally, because the port holds a Foreign Trade Zone designation, the local community is susceptible to the current administration’s trade policy. 

The Port of New Haven hosts about 200 vessel calls a year — bulk carriers, general cargo vessels, oil tankers – with petroleum imports comprising 81% of all traffic at approximately $1.75 billion a year. These imports arrive as they usually do, with minimal tariffs – hoping to curb rising energy prices across the country, Mr. Trump exempted petroleum-related products from his tariffs. The port’s dry goods importers, bringing in over 600,000 tons in cargo annually  that contribute to roughly $250 million across CT ports (largely industrial metals, wood, and consumer products), still incur duties. So the port’s customers are paying more for their metals and wood, and they aren’t alone. 

Tariffs on dry-bulk goods and consumer imports hardly go unnoticed. Most obviously, more tariffs over time mean less cargo — thus, less business for the port and weakened job opportunities — and also more costs. On Grand Avenue, Vinnie’s Italia Importing owner Mike DiVirgilio has to pay an additional 15% on Italian pasta, sausage, wine, and sauce. He’s already raised prices on pasta from Rummo, Barilla, La Molisana, and Garofalo, passing costs to roughly 50 Southern Connecticut restaurant clients, including Adriana’s, Goodfellas, and Consiglio’s, and has observed customers cutting back on meat purchases as prices climb. In Ninth Square, Elm City Games raised the price of the German-made board game Horrified — also covered by the 15% tariff — from $20 to $28, an increase New Haven Rep. Rosa DeLauro cited alongside a LendingTree estimate that tariffs cost shoppers $132 more during the prior holiday season. In North Haven, the 10% tariffs on Canadian lumber and the 50% rates on steel and aluminum added an average of $10,900 to the price of a new home, according to T&M Homes president Greg Ugalde. A local realtor, meanwhile, said tariffs — spiking above 150% on Chinese consumer goods last year, and at 20% for Vietnamese or Malaysian substitutes — have doubled or tripled many appliance costs.

These individual price hikes sit inside a much larger cost shock moving through New Haven’s trade infrastructure, along with those of Connecticut and the rest of the country. Tariffs are a tax collected at the port of entry (e.g., seaport, airport, border crossing), usually as a percentage of cargo value. The importer of record—typically a U.S. company—pays Customs and Border Protection (CBP) directly. This payment is due within ten days of cargo being released on all shipments of $2,500 or more. Additionally, CBP requires a customs bond to ensure payment in case the importer defaults on their payment. The bond is sourced by a third-party surety company, which collects a premium annually. Although the bond is a small percentage of the duty owed, insurance payments create an additional worry for importers. Tariffs have increased these costs by as much as 200% to 500% and up to $450 million for large importers. This table is a helpful example of how tariffs not only raise costs but add financial risk:

 

Good  Tariff Rate   Annual Goods Value   Annual Tariff   Bond (10%)   Premium (~1% of bond)   Premium as % of Goods Value 
Steel (Section 232)   50%   $12M   $6M   $600,000   ~$6,000   ~0.05%
Italian pasta (EU tariff)   15%   $12M   $1.8M   $180,000   ~$1,800   ~0.015%

 

Businesses relying on foreign imports have now faced several price hikes and are offered limited options. Many U.S. retailers receive invoices with explicit “duty recovery” line items from distributors, making the cost of Mr. Trump’s tariffs impossible to go unnoticed by sellers. Eventually, companies can no longer circumvent the costs, and they raise their prices. Over nearly 10 months, the time it took for the Supreme Court to strike down the Trump administration’s first of four distinct tariff efforts, consumers had already begun to bear the brunt of the cost. A study by the Kiel Institute for the World Economy found that 96% of all tariff costs are passed through to U.S. buyers. That is what shoppers and restaurant-goers on Grand Avenue are seeing. 

The link between Mr. Trump’s trade regime and the sharp rise in New Haven’s costs is clear. After the signing ceremony at the Rose Garden, the handing off of the physical copy, and the tradition of giving out the signing pens as souvenirs, Mr. Trump’s Executive Order 14257 — the largest of the administration’s dozens of tariff decrees, termed  “Liberation Day” —  officially took effect on April 2, 2025. While the Supreme Court struck it down roughly a year later, the administration has tried to supplant it with similar levies, and the tariffs’ effects had already proliferated. 

Overall, Connecticut’s cost of imported goods rose by at least $3.16 billion in the tariffs’ first year, a 14% increase over 2024. Statewide, manufacturers stomached roughly $600 million in exposure from Mr. Trump’s Section 232 steel and aluminum tariffs on Canadian and Mexican imports alone, costs that flow directly through Gateway Terminal, the Port of New Haven’s only dry-bulk facility. Nationally, ferrous scrap exports — Connecticut’s largest single export commodity by weight, with much of it moving through New Haven — are on pace to fall 15% in 2025 to their lowest levels annually since 2004, even as domestic scrap prices run 15 to 20 percent above global rates. Storefronts and port terminals tell two different sides of the same story: New Haven has become just one of many municipalities across the country that have bled profusely due to a concerted effort by the Trump administration to sidestep the legislative process and abuse executive authority. 

The decisions to raise costs, whether by the importer, distributor, or retailer, all operate as part of an unforgiving apparatus that distributes blame and obfuscates the simple economics of a tariff — a tax on foreign goods. 

How do residents feel about all this? A UNH poll taken after Mr. Trump’s initial round of tariffs found that almost two-thirds of Connecticut residents believed tariffs would harm the economy, and a plurality believed they would be personally worse off in a year. Mr. Trump’s tariffs have and will continue to see diminishing popularity as prices rise, and more Americans will begin to point blame. New Haven residents are not unusual; hundreds of municipalities face rising costs due to unrelenting tariffs. GDP growth is expected to slow, and the posited benefits have yet to be seen at the scale promised by the Trump administration. New Haven’s experience is not the exception, but rather the expected result of the Trump administration’s tariff hikes.  

American young people are exceptionally unhappy

FACT: American young people are exceptionally unhappy.

THE NUMBERS: Americans’ “happiness” ranking, relative to 146 other countries, 2023-2025.*

All Americans               23rd
Americans under 30     60th

World Happiness Survey 2026

WHAT THEY MEAN: 

Summary paragraph from the Kennedy School’s grim 2026 poll of Americans under 30:

“For many 18- to 29-year-olds, the cost of living — especially inflation and housing — defines what they see as a true crisis, while trust in government, elections, and national leadership remains strikingly low. … A pervasive sense of threat is defining everyday life for young Americans, and they are increasingly losing faith. Young people have consistently felt unheard; now they feel unheard and actively in crisis.”

K-School pollsters aren’t alone. UN and Oxford U. researchers tasked with assessing “happiness” find the same thing. Their “World Happiness Survey 2026” (whose figures cover the years 2023-2025) ranks Americans “23rd most happy” among the 147 countries in the survey. At face value, a boring and mediocre ranking — but it gains some texture when the researchers separate their responses by age: young Americans placed a dismal 60th in the world. The 2024 WHR, though slightly dated, provides more detail. Boomers seem very contented in their retirement (or in some cases near-retirement), while their “Gen Z” children and “Gen Alpha” grandchildren are unhappy. The intervening “millennials” and “Gen-Xers” are in between:

“Boomers,” over 65     10th
“Gen-X,” 45-59            17th
Overall                         23rd
“Millennials,” 30-40      42nd
“Gen-Z,” under 30        62nd

America’s unhappy youth aren’t wholly unique. Similar generation gaps, borrowing a boomer term, show up in most high-income countries, especially though not exclusively English-speaking ones. Canadians, for example, rank 25th for happiness; younger Canadians, though, are a dismal 71st. Much the same in the UK, where Brits in general place 29th, but young Brits only 64th; and while New Zealanders are a cheerful 11th in general, young Kiwis place 54th. Elsewhere, the French rankings are 35th and 65th, Swiss 10th and 44th, and Singaporeans 36th and 69th. So to some extent, youth discontent seems widespread.  Three possible explanations, none mutually exclusive:

Technology? The WHR researchers, noting a general decline in young people’s happiness since their survey’s early years, assign a lot of blame to intensive social media use. This view is widely shared, but can’t be the whole story since young people seem happier in some tech-heavy locales. In very-online Japan, Korea, and Taiwan, WHR’s happiness ratings are about the same for young and old.  And in Central and Eastern Europe, young people are usually happier than their elders and peers. Croatians rank 70th for happiness overall, but 11th in the 25-and-younger tier, and similar “relative happiness” among young people turns up in Montenegro, Albania, Bulgaria, and Ukraine.

Demographics and aging costs? Another explanation, focused on wealthy countries, lies in demographics. Since 2000, the count of Americans 65 and up has nearly doubled from 35 million to 66 million. The under-30 count, meanwhile, is up from 119 million to 126 million — only 7 million in total.  Graying is faster still in Europe and Asia. As countries age, well-intentioned and objectively necessary public policies become increasingly powerful engines for shifting income from young to old: Social Security, government pensions, Medicare, veterans’ benefits, etc., must all serve a growing army of older people, while relying on relatively static younger brigades for the finance. This isn’t a problem with an obvious solution — if governments don’t assume health and pension costs, families will have to pick up the cost instead — but it nonetheless places steadily rising financial pressure on the young.

U.S. choices: Specific U.S. peculiarities and decisions amplify all these problems. At local levels, high housing costs and organized NIMBY-ism make it harder for young people to build wealth. At the national level, rapid federal government debt buildup means young people can expect relatively more taxation and fewer services in the future. More immediately, the post-2016 and post-2024 tariff increases, as policies designed to raise goods prices, gnaw away more of a young person’s income than anyone else’s. (Per the Bureau of Labor Statistics, young Gen Z-ers spend about 28.8% of their income on physical goods, prime earning-age Gen-X 19.8%, and retirement-age boomers 26.2%.) A blunt comment from newly formed activist group Students for Abundance draws on housing, transit, education, and power costs to conclude that policy seems designed “to make life harder for those starting out and easier for those already at the top.”

In sum, as the fall’s election season approaches, America’s young people aren’t happy. And they aren’t wrong to see a system tilting against them. The K-School poll’s political findings — young Americans sharply opposed to Trumpism, but with little faith that other politicians are likely to make their problems and concerns a priority — are a challenge the political world has yet to answer.

FURTHER READING

PPI’s four principles for response to tariffs and economic isolationism:

  • Defend the Constitution and oppose rule by decree;
  • Connect tariff policy to growth, work, prices and family budgets, and living standards;
  • Stand by America’s neighbors and allies;
  • Offer a positive alternative.

PPI and friends:

PPI’s American Identity Project and the Center for New Liberalism, in their spring essay competition, ask young Americans about citizenship and “what it means to be an American.

… and Center for New Liberalism co-founder Jeremiah Johnson, in The Argument, looks at affordability and young people.

PPI’s comprehensive Budget Blueprint (2024) from VP for Policy Ben Ritz and then-Fiscal Policy Analyst Laura Duffy, rethinks U.S. fiscal policy to (among much else) shift taxation away from wages and salaries and toward consumption; strengthen Social Security’s intergenerational compact; make housing more affordable; and restore ‘fiscal democracy’ by reducing interest payments and freeing space for public investment and discretionary spending.

… and Ritz (2026) examines creative ways to save Social Security without putting an undue tax or debt burden on young Americans.

Not pleased, a little disheartened, but not losing faith – Students for Abundance seeks better and more affordable housing, transit, energy, and health care, building and permitting reform, public investment.

Data:

Harvard’s Kennedy School of Government (May 2026) polls young Americans on inflation, politics, war, national institutions, and more.

The World Happiness Report 2026, with discussion of social media impacts, and links to earlier editions. A bit of explanation, and some findings –

And more from the WHR:

The WHR people do their rankings by contracting with Gallup to ask people in 147 countries and territories a single question:

“Please imagine a ladder with steps numbered from 0 at the bottom to 10 at the top. The top of the ladder represents the best possible life for you and the bottom of the ladder represents the worst possible life for you. On which step of the ladder would you say you personally feel you stand at this time?”

Typically a group of small, wealthy countries — especially Scandinavians — shows up at the top. War-troubled and least-developed countries fare least well.  Some detail:

Top-lines: The survey’s happiest countries are mostly north of the Arctic Circle. Finns, Icelanders, and Danes take the top three slots, with Swedes 5th and Norwegians 6th. Fourth-ranked Costa Rica is the only non-Scandinavian country in the top six, and by far the highest-placing middle- or lower-income country; 26th-place Taiwanese were the happiest Asians. Late-Orban-era Hungary was the 74th-ranked median country, and Mauritius topped Africa’s rankings. Afghanistan was the survey’s least-happy country, in 147th place just below Sierra Leone and Malawi.

More: Supplementary questions ask about “freedom to do what you want with your life,” “generosity” (meaning donation to charities), recent emotions, and perceptions of corruption in government, business, and civil society.

  • Southeast Asians led on the ‘freedom to do what you want with your life’ category, with Vietnamese ranked first in the world, Cambodians second, and Thais eighth.
  • Southeast Asians and Europeans were very strong on “generosity”: Indonesians and Burmese came first and second, with Maltese, Ukrainians, Brits, and Irish rounding out the top six.
  • Singaporeans, Danes, and Finns felt most confident about the honesty and non-corruption of society.
  • Latins fared best on a “short-term emotion” measurement, with Guatemalans and Paraguayans most likely to report laughter, enjoyment, and interest in the previous day.
  • The U.S., setting aside generational differences, fared best on generosity (16th). The worst U.S. ranking — 104th! — was on “freedom to do what you want with your life,” consistent with the Kennedy School’s finding of intense concern over inflation and costs, and fading confidence that the political system will deliver much help.

ABOUT ED

Ed Gresser is Vice President and Director for Trade and Global Markets at PPI.

Ed returns to PPI after working for the think tank from 2001-2011. He most recently served as the Assistant U.S. Trade Representative for Trade Policy and Economics at the Office of the United States Trade Representative (USTR). In this position, he led USTR’s economic research unit from 2015-2021, and chaired the 21-agency Trade Policy Staff Committee.

Ed began his career on Capitol Hill before serving USTR as Policy Advisor to USTR Charlene Barshefsky from 1998 to 2001. He then led PPI’s Trade and Global Markets Project from 2001 to 2011. After PPI, he co-founded and directed the independent think tank ProgressiveEconomy until rejoining USTR in 2015. In 2013, the Washington International Trade Association presented him with its Lighthouse Award, awarded annually to an individual or group for significant contributions to trade policy.

Ed is the author of Freedom from Want: American Liberalism and the Global Economy (2007). He has published in a variety of journals and newspapers, and his research has been cited by leading academics and international organizations including the WTO, World Bank, and International Monetary Fund. He is a graduate of Stanford University and holds a Master’s Degree in International Affairs from Columbia Universities and a certificate from the Averell Harriman Institute for Advanced Study of the Soviet Union.

Read the full email and sign up for the Trade Fact of the Week.

Canada is the top export market for 27 U.S. states

FACT: Canada is the top export market for 27 U.S. states.

THE NUMBERS: Canadian share of U.S. state exports*, 2025 –

Maine 41%
Michigan 39%
Wisconsin 31%

* * U.S. Commerce Department, TradeStats Express database

WHAT THEY MEAN: 

Special note: Beginning in August, Trade Facts will be delivered through PPI’s newly launched Substack, “ Radically Pragmatic.” Trade Fact emails will continue as usual, free and with no solicitations.

The Canadian government’s good-neighbor response to last year’s California wildfire crisis:

“Canadians are grateful for the support and solidarity extended to Canada by the United States during our own challenging wildfire season last year. Team Canada stands ready to reciprocate that support during this time of need. Canada has been working with the Provinces and Territories to ready its support. We have left no stone unturned and are exploring all avenues to offer our support to the people of California. Canadian agencies, including the Canadian Armed Forces, the Canadian Coast Guard, Global Affairs Canada, and Natural Resources Canada, are actively engaged in discussions with the United States Federal Emergency Management Agency (FEMA), and the U.S. National Interagency Coordination Center (NICC), and the California Governor’s Office of Emergency Services and the City of Los Angeles to determine how best to assist in the response and recovery efforts.”

Canada’s support during the California fires was the normal pattern of northern-border life for the past century, not an anomaly. Here’s then-President Reagan signing the U.S.-Canada Free Trade Agreement in 1988:

“Let the 5,000-mile border between Canada and the United States stand as a symbol for the future. No soldier stands guard to protect it. Barbed wire does not deface it. And no invisible barrier of economic suspicion and fear will extend it. Let it forever be not a point of division but a meeting place between great and true friends.”

In pretty sharp contrast to both Canada’s 2025 fire relief mission and Reagan’s vision of North American community, White House lawyers last week “operationalized” Mr. Trump’s bizarre response to Ontario’s summer fire misfortune — a threat to impose tariffs after smoke drifted south across the border — by exhuming a 1930 trade law (“Section 338”) and using it to threaten 50% tariffs on about $20 billion worth of Canadian-made goods. (Cars, liquor, wood products, motorcycles, hockey and gymnastics equipment, etc.) Reframed by White House lawyers and trade officials as a response to supposed Canadian “discrimination” against American products, and then quietly pitched to reporters as a “negotiating leverage” gambit, this will supposedly go into effect around Labor Day. Given these claims of “discrimination”, here’s a look at Canada as a U.S. customer:

Policy: Canadian trade policy is in a sense “discriminatory,” but mostly in favor of American goods. Per the WTO’s “World Tariff Profiles,” Canada’s normal “trade-weighted” tariff average is 3.6% for goods in general, and 15.1% on farm products. Four generations of trade negotiations and signing ceremonies the 1960s — the Reagan-Mulroney “U.S.-Canada Free Trade Agreement” of 1988, the Johnson-Pearson “Agreement on Auto Trade” in 1968 a generation earlier, the Bush/Clinton/Mulroney/Salinas “North American Free Trade Agreement” of 1993 and the 2019 revision of NAFTA into the “U.S.-Mexico-Canada Agreement” — do leave a few trade barriers in place. (American trade bureaucrats have snapped lots of pencils and worn holes in many mouse pads over Canadian dairy quotas and movie regulations; to be fair: their Canadian counterparts can call up similar experiences with lumber-subsidy tariffs and “Buy American” purchasing rules.) These arguments, however, have always been financially small pieces of a much larger trade relationship, in which the trade agreements exempt American goods from nearly all Canadian tariffs. Partly mirroring this fact of policy, and partly the pull of geography, Canada matches Mexico as the largest buyer of American goods, and most of the things Canadians buy from abroad are American.

Data: So far this year, StatCanada reports Canadians importing C$357 billion worth of goods, of which C$205 billion, or about 60%, came from American farms, factories, and mines. Or, using American data, Canadians bought $334 billion of last year’s $2.2 trillion in U.S. goods exports — a billion dollars a day, and a seventh of the total.

States: Canadians were the top buyers of goods from 27 U.S. states. This is particularly evident close to the northern border — on top of the Maine, Michigan, and Wisconsin stats above, 39% of Idaho’s $4.6 billion in exports go to Canadian buyers, along with 47% of Montana’s $2.2 billion, and a startling 81% of North Dakota’s $9.4 billion. But large figures show up pretty much everywhere, with Canadians also the top buyers of goods from Alabama, Connecticut, Delaware, Georgia, Illinois, Iowa, Kentucky, Maryland, Minnesota, Missouri, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, South Dakota, Tennessee, Virginia, West Virginia, Wisconsin, and Wyoming.

Agriculture: Canada was just behind Mexico as last year’s second-largest buyer of American farm goods and seafood — $28.7 billion of U.S. agriculture’s $171.5 billion worldwide export total. That’s, among other things, 160,000 tons of U.S.-grown watermelon and 87,000 tons of strawberries, 3,700 tons of pecans, 45,000 tons of mushrooms, 16,000 tons of lobster, 40,000 tons of sausage, and 194,000 tons of rice.

Manufacturing: Canada is the top market for American factory goods, buying $286 billion of American manufacturers’ $1.77 trillion in worldwide sales. This includes one in every four exported U.S. cars and trucks, 1.26 billion liters of paint — enough to fill 500 Olympic pools, 2.4 million tons of makeup and eyeliner, 146,000 home washing machines, 866,000 wrenches, 12,820 MRI machines, and so on through long lists of tech products, consumer goods, planes, chemicals, medicines, and more.

Set against this, the White House’s not-very-accurately-named “Fact Sheet” points out that American wine, beer, and car sales dropped a lot last year. (“From March 2025 to February 2026, Canadian imports of alcoholic beverages decreased by about 81%, or $582 million, compared to the same period in 2024/2025”; “from April 2025 through May 2026, Canadian imports of U.S. motor vehicles decreased by approximately 25%, or $5.6 billion, compared to the same period in 2024/2025”.) They aren’t wrong about this, but there’s an obvious reason: the lost wine sales and the auto strife, and the falling tourism counts as well, are the direct result of Trump administration policy – wrongly accusing Canada of indifference to fentanyl trafficking and threatening a 25% tariff on Canadian goods in February 2025; then imposing “national security” tariffs of 25% and later 50% on Canadian steel, aluminum, and copper, and 25% on automobiles a few months later – and more generally Mr. Trump’s choice to project not good-neighborliness toward Canada but a mix of disrespect, arrogance, self-pity and other qualities that one guesses would have revolted President Reagan.

Nor was Reagan’s take on northern-border life some sort of odd exception. All modern U.S. administrations — those of Roosevelt and Eisenhower, Johnson and Nixon, Clinton, Bush, Obama — were perfectly well aware of the value Americans draw (including in trade, but far from trade only) from a close and trusting relationship with Canada. None had any trouble managing this relationship well. All left it to their successors in good shape. The next president, unfortunately inheriting something quite different, will have lots of repair work to do.

FURTHER READING

PPI’s four principles for response to tariffs and economic isolationism:

  • Defend the Constitution and oppose rule by decree;
  • Connect tariff policy to growth, work, prices and family budgets, and living standards;
  • Stand by America’s neighbors and allies;
  • Offer a positive alternative.

How it was & ought to be:

President Reagan signs the U.S.-Canada FTA, 1988.

Canadian Embassy state-by-state trade and investment summaries.

Canadian government offers assistance to California fire communities.

PPI’s Ed Gresser looks at the U.S.-Mexico-Canada Agreement and this summer’s “review” as of 2026. TL/DR: USMCA isn’t broken, doesn’t need major change.

How it is now:

White House yet again threatens Canada with tariffs.

calm response from Canadian Prime Minister Mark Carney.

And the Canadian Broadcast Corporation coverage.

And some legal background:

After the collapse of last year’s “IEEPA” tariffs, Mr. Trump has turned to “Section 338” for last week’s threats. An afterthought in the larger 1930 “Smoot-Hawley Tariff” bill, it authorizes presidents to impose tariffs of up to 50% on goods from countries whose policy “discrimination” against American products causes us some commercial damage. And the background: Trade policy historian Douglas Irwin (via NBER) reconstructs the 1920s backstory to Section 338.

If last week’s threats actually go into effect, will they stand up in court? No easy answer, since no previous administration has tried to use this law and legal scholars seem uncertain about (a) whether it actually remains in effect — possibly repealed by Kennedy’s 1962 Trade Act? Maybe made moot by the Ford-era passage of “Section 301” in 1974? — and (b) if it does, whether an administration can use it ad hoc as Mr. Trump is trying to do.

ABOUT ED

Ed Gresser is Vice President and Director for Trade and Global Markets at PPI.

Ed returns to PPI after working for the think tank from 2001-2011. He most recently served as the Assistant U.S. Trade Representative for Trade Policy and Economics at the Office of the United States Trade Representative (USTR). In this position, he led USTR’s economic research unit from 2015-2021, and chaired the 21-agency Trade Policy Staff Committee.

Ed began his career on Capitol Hill before serving USTR as Policy Advisor to USTR Charlene Barshefsky from 1998 to 2001. He then led PPI’s Trade and Global Markets Project from 2001 to 2011. After PPI, he co-founded and directed the independent think tank ProgressiveEconomy until rejoining USTR in 2015. In 2013, the Washington International Trade Association presented him with its Lighthouse Award, awarded annually to an individual or group for significant contributions to trade policy.

Ed is the author of Freedom from Want: American Liberalism and the Global Economy (2007). He has published in a variety of journals and newspapers, and his research has been cited by leading academics and international organizations including the WTO, World Bank, and International Monetary Fund. He is a graduate of Stanford University and holds a Master’s Degree in International Affairs from Columbia Universities and a certificate from the Averell Harriman Institute for Advanced Study of the Soviet Union.

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Trump’s New Tariffs, Likely Illegal, Will Cost Americans $100 Billion a Year

WASHINGTON (July 23, 2026) — Today, Ed Gresser, Vice President and Director for Trade and Global Markets of the Progressive Policy Institute (PPI), released the following statement in response to the Trump administration’s announcement of “Section 301” tariffs on goods from 60 U.S. trading partners, 10% for 22 partners and 12.5% for the other 38 compared to a legal “simple average” rate of 3.5%, ostensibly related to imports of products made with forced labor:

“The experience with the Trump administration’s illegal ‘international emergency’ tariffs last year suggests that its new Section 301 tariff decree, if it survives court scrutiny, will likely cost Americans $100 billion a year. Mr. Trump and his trade officials have clearly told American families to expect higher prices for groceries, back-to-school supplies, Christmas presents and other goods this fall. And it has warned American businesses grappling with the high cost of essential goods and business inputs — farmers, manufacturers, restaurants, building contractors, retail shops, clinics and others — to expect no relief.

“The administration’s decree, however, may fail in court just as last year’s IEEPA Executive Orders did. As PPI’s testimony earlier this month explained, measured either against the Constitutional separation of powers or the statutory rules of Section 301, its vague claims about forced labor abroad do not hold up. Constitutionally, it is likely impermissible as an attempt to use a law designed for problem-solving abroad to impose a general tariff increase. And legally, Section 301 requires administrations to demonstrate ‘unreasonable acts, policies, or practices’ which impose a burden on U.S. commerce, which this Executive Order fails to do. While making emotive claims about forced labor, it neither presents evidence that the listed countries are buying goods made with the use of forced labor, nor demonstrates that if they were, this would impose the statutorily required ‘burden on U.S. commerce.’

“Thus, the Executive Order looks vulnerable to challenge, and courts would have good reason to strike it down. The courts, however, should not have to make this call. Rather, Congress should act to restore Constitutional policymaking after a year of erratic, constantly changing, and basically inappropriate administration attempts to rule by decree. Senator Ron Wyden (D-Ore.) this week introduced important legislation to terminate Mr. Trump’s tariff decrees en bloc and restore a Constitutionally appropriate, Congressionally-driven system for setting tariff rates. The appropriate next step is for House Speaker Mike Johnson, Ways and Means Committee Chairman Jason Smith, and their Senate counterparts Majority Leader John Thune and Finance Committee Chairman Mike Crapo to pass this bill and restore the Constitutional order.”

Read more about Section 301 and how the Trump Administration is trying once again to circumvent Congress to implement tariffs and skyrocket costs for Americans here.

Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us at @ppi.

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Media Contact: Ian O’Keefe – iokeefe@ppionline.org

PPI Background on the Trump Administration’s Attempt to Implement Section 301 and Forced Labor Tariffs

Section 301,” a trade statute drafted in 1974, authorizes presidents to use tariffs as negotiating leverage to solve specific trade policy problems, after demonstrating that the government of a relevant country is implementing unreasonable “acts, policies, or practices” that impose a “burden on U.S. commerce.”Secretary of the Treasury Scott Bessent announced that the Trump administration would use this law, along with “Section 232,” to restore the International Emergency Economic Powers Act tariff rates the Supreme Court struck down that month.

Five months later, the Trump administration’s Executive Order uses Section 301 to impose tariffs of 10% on goods from 6 U.S. trading partners (Canada, Ecuador, the European Union, Indonesia, Pakistan, and the U.K.) and of 12.5% on goods from another 54, from Australia, New Zealand and Japan to Chile, Colombia, Mexico, China, South Africa, and Bangladesh. Together, these countries are the source of about $3.3 trillion in goods, roughly 97% of the consumer goods, groceries, industrial inputs, and raw materials American families and businesses buy from abroad. Based on the $82 billion raised by last year’s 10% “IEEPA” global tariff, imposed on April 9, 2025, and in place until the Supreme Court’s decision in February, the action is likely to cost Americans roughly $100 billion a year.

The administration’s argument for this action is a claim that (a) the countries on its list are importing goods made with the use of forced labor, and using them to produce other goods competing with American products, and (b) this imposes a “burden” on U.S. commerce by unnaturally reducing the prices of their goods. Gresser’s July 2026 testimony, given before the U.S. Trade Representative Office’s “301 Committee,” rebuts both claims, arguing that the action fails on Constitutional grounds, and also fails to meet Section 301’s evidentiary standards:

  • Secretary Bessent’s comment demonstrates that this action, along with the accompanying Section 301 investigation of “structural excess capacity” in manufacturing in 16 economies, is simply meant to replace the illegal IEEPA Executive Orders of 2025 and impose a general tariff increase, rather than to address a forced-labor policy question through policy reform. Section 301 does not authorize general tariff increases, as the Constitution reserves this to Congress by assigning power over “Taxes, Duties, Imposts, and Excises” to Congress in Article I. The Executive Order is therefore an impermissible breach of the separation of powers.
  • The U.S. Trade Representative Office’s Report of June 2 recommending these tariffs fails to demonstrate that any of the countries it names are importing forced labor goods. Rather, it simply notes that there is some forced labor trade in the world, and that the listed countries must therefore be buying some. In some cases — for example, Spanish breweries’ imports of Burmese rice for malt liquor — it accuses the countries of buying goods Americans also buy. This cannot justify tariff imposition.
  • USTR’s Report also fails to demonstrate that, if any of the listed countries are in fact buying forced labor goods, this would impose a “burden” on U.S. commerce. It argues that “in general”, forced labor enterprises would produce goods at lower costs than honorable and law-abiding businesses. This may well be true in some cases, but as Gresser’s testimony points out, the largest recent U.S. forced-labor enterprise – “Rojas Avila Harvesting,” a labor contractor active in Georgia onion and blueberry picking, 24 of whose executives and associates have pleaded guilty to human trafficking, forced labor, and other crimes — operated for years without affecting the prices of goods. Only empirical data and analysis could demonstrate the price effects USTR assumes to be a general pattern, and its report offers none.
  • Outside the bounds of this particular action, the Trump administration has shown little interest in forced labor. To the contrary, it has sharply scaled back U.S. government efforts to eliminate forced labor, canceling all U.S. support for forced labor elimination overseas through DOGE last year and reducing the number of Labor Department inspectors to fight it at home.

Gresser in The Economist: The tariffs that just won’t die

[…]

But they could soon rise further. Later this year, the USTR is expected to impose further country-specific duties under Section 301 investigations into “structural excess capacity” among 16 of America’s largest trading partners. The administration accuses these countries of “producing more goods than they can consume or productively invest domestically”, a definition that Ed Gresser of the Progressive Policy Institute, a think-tank, calls “eccentric”.

[…]

Read more in The Economist

Merchant fleet shipping capacity has doubled since 2010

FACT: Merchant fleet shipping capacity has doubled since 2010.

THE NUMBERS: Deadweight tonnage of worldwide merchant shipping fleet* –

       2026     2.53 billion tons
2020     2.07 billion tons
2010     1.28 billion tons
2000     0.79 billion tons
1990     0.63 billion tons

UNCTADStat

WHAT THEY MEAN: 

Special note: Beginning in August, Trade Facts will be delivered through PPI’s newly launched Substack, “Radically Pragmatic.” Trade Fact emails will continue as usual, free and with no solicitations.

strange proposal from Mr. Trump last week suggests permanent U.S. Navy policing Strait of Hormuz traffic in exchange for a rakeoff:

“All other countries will have fair and open use of the Strait,” [and the U.S.] “will be reimbursed, at therate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.”

As with the July 8 “embargo on Spain” idea, this looks more like an agitated search for a Gulf achievement than anything serious. Also like that one, it seems to have swiftly disappeared. The more traditional U.S. maritime principles are (a) “freedom of navigation” on oceans and in international waterways like the Strait, as a support for U.S. commerce and common-good contribution to world prosperity, and (b) the U.S. Navy is not for foreign rent or hire. (Very traditional maritime principles, continuous from the Jefferson administration’s 1807 response to the Orders in Council, through Admiral Mahan’s Gilded Age theorizing, the Fourteen Points and the Atlantic Charter, to the 21st-century FONOPS; see below.) In that spirit, the present-day big picture on commercial fleets and navies:

Ships: As of January 2026, according to UNCTAD’s “Review of Maritime Transport”, 116,000 merchant ships of 100 tons or more were on the water at the beginning of 2026, together capable of carrying 2.5 billion tons of cargo at any one time. (About 150 per day were transiting the Strait of Hormuz in that pre-war month; this week it’s about ten a day.) Steaming alongside this commercial fleet are about 45,000 large fishing vessels (by the UN FAO’s count), plus 14,000 cruise ships and large yachts; a few hundred icebreakers, cable ships, and other specialized vessels; and 4,000 naval ships. A basic tally:

Cargo vessels, over 100 deadweight tons (DWT) 116,000  2,529 million DWT
… bulk carriers    14,000   1,067 million DWT
… oil tankers 9,000      683 million DWT
… container ships      7,600      389 million DWT
… general cargo   16,000        84 million DWT
… roll-on/roll-off           850        16 million DWT
… other cargo*   69,000     190 million DWT
Fishing vessels, over 100 tons 45,000      40 million DWT
Cruise vessels, ferries, yachts 14,000        3 million DWT
Navies 4,000      18 million DWT

* “Other cargo” includes small coastal cargo ships, seagoing barges, refrigerated “reefers” carrying perishable cargoes, etc.

Fleet growth: Though government trade policies have mostly deadlocked over the last decade, the actual real-world commercial fleet has grown with startling speed. The 98,000 merchant ships of 2010 could ferry 1.28 billion tons of cargo around the oceans — half of this year’s 2.53 billion-ton capacity, with the container fleet growing from 169 million to 389 million deadweight tons and the bulk-carrier fleet from 457  million to 1.06 billion deadweight tons. Nor does this burst of growth look like it’s slowing down. Last year, 1,643 new vessels steamed out of the yards, and BRS Shipbrokers says 5,600 more are under construction this year: 4,055 in China, 731 in Korea, 633 in Japan, 320 in Europe, 306 everywhere else. (The U.S. is making 15 — not a lot, but a noticeable jump from the three a couple of years ago, after the Philly Shipyard’s 2024 purchase by Hanwha Oceans.) By 2029 or so, these new vessels will likely add another 470 million tons of cargo capacity.

Cargo: In a normal peacetime year, about $0.85 trillion worth of goods transit the Strait of Hormuz. (About $600 billion comes out in the form of oil, aluminum, fertilizer, helium, etc., and $250 billion goes in.) That would be about 3% of the $18 trillion in annual worldwide maritime goods trade. For context, this is roughly 60% of the world’s $26 trillion in goods exports, or, relative to output, about (a) 15% of the world’s $118 trillion ‘GDP’, and (b) 64% of the global $29 trillion in value-added manufacturing, agriculture, forestry, mining, and fisheries output. (Land trade and air cargo are about $6 trillion; the three transport ‘modes’ overlap a bit, so the numbers don’t sum perfectly to $26 trillion.) Here’s an evocative visualization —done in 2012, so a bit dated — of these ships as they move across oceans and through narrows.

The military arm: The world’s navies are much smaller than the commercial and fishing fleets, operating 4,000 warships with a combined tonnage of 18 million deadweight tons. The U.S. Navy’s 290 ships combine for 8.6 million DWT, or about 45% of the worldwide total. According to the U.S. Naval Institute’s fleet tracker, 18 of these ships, including two of the 11 carrier groups, are in the Persian Gulf at a cost of about $15 million a day:

Two Nimitz-class aircraft carriers with two Carrier Air Wings’ worth of fighters, strike aircraft, and helicopters (Wings 9 and 7) aboard
Twelve Arleigh Burke-class guided missile destroyers (DDGs)
One Ticonderoga-class guided missile cruiser
One amphibious assault ship
One amphibious dock landing ship
One amphibious transport dock ship

FURTHER READING

PPI’s four principles for response to tariffs and economic isolationism:

  • Defend the Constitution and oppose rule by decree;
  • Connect tariff policy to growth, work, prices and family budgets, and living standards;
  • Stand by America’s neighbors and allies;
  • Offer a positive alternative.

PPI’s Director of National Security Policy Danielle Steitz, a Joint Staff and House Armed Services Committee alumna, tracks U.S. military and security policy.Centcom reports on Gulf operations.

The U.S. Naval Institute’s Fleet Tracker tells you, more or less, where the Navy ships are.

Commercial vessels:

UNCTAD’s Review of Maritime Transport summarizes the world’s commercial fleet as of 2025.

… and a one-page data update for 2026.

BRS Shipbrokers tallies shipbuilding orderbooks.

The Hanwha Philly Shipyard, Hanwha Oceans’ joint-build project, hopes to revive U.S. civilian
shipbuilding.

Fishing fleets:

UN FAO tallies on the world fishing fleet – about 4.1 million vessels in total, of which 2.5 million have motors, and 45,000 are large vessels of 100 tons or more.

And the “freedom of navigation” backstory:

19th century: Thomas Jefferson’s spirited response (1807) to the U.K.’s Orders in Council during the Napoleonic Wars; Admiral Mahan argues (1890) for a powerful American fleet, as “the necessity of a navy springs from the existence of a peaceful commerce.”

20th century: The second of Wilson’s Fourteen Points (1918), on encouraging peaceful trade, starts with “absolute freedom of navigation upon the seas”; the Atlantic Charter’s seventh clause (1941) states a right for all to “traverse the high seas and oceans without hindrance.”

21st century: The Navy’s 21st-century “FONOPS” (“Freedom of Navigation Operations”) program asserts the right of passage in tense waters.

ABOUT ED

Ed Gresser is Vice President and Director for Trade and Global Markets at PPI.

Ed returns to PPI after working for the think tank from 2001-2011. He most recently served as the Assistant U.S. Trade Representative for Trade Policy and Economics at the Office of the United States Trade Representative (USTR). In this position, he led USTR’s economic research unit from 2015-2021, and chaired the 21-agency Trade Policy Staff Committee.

Ed began his career on Capitol Hill before serving USTR as Policy Advisor to USTR Charlene Barshefsky from 1998 to 2001. He then led PPI’s Trade and Global Markets Project from 2001 to 2011. After PPI, he co-founded and directed the independent think tank ProgressiveEconomy until rejoining USTR in 2015. In 2013, the Washington International Trade Association presented him with its Lighthouse Award, awarded annually to an individual or group for significant contributions to trade policy.

Ed is the author of Freedom from Want: American Liberalism and the Global Economy (2007). He has published in a variety of journals and newspapers, and his research has been cited by leading academics and international organizations including the WTO, World Bank, and International Monetary Fund. He is a graduate of Stanford University and holds a Master’s Degree in International Affairs from Columbia Universities and a certificate from the Averell Harriman Institute for Advanced Study of the Soviet Union.

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PPI Applauds Legislation to Restore Congressional Constitutional Authority Over Tariffs

WASHINGTON (July 22, 2026) — Today, Ed Gresser, Vice President and Director for Trade and Global Markets at the Progressive Policy Institute (PPI), released the following statement regarding Senator Ron Wyden’s (D-Ore.) introduction of the Congressional Trade Powers Reform Act of 2026:

“Since February of 2025, the Trump administration has produced a stream of ever-changing tariff decrees, ranging from across-the-board rate increases designed to restore Depression-level tariff rates and 19th-century taxation systems, to unprovoked attacks on Canada, to bizarre claims that condensed milk and balance beams are ‘steel or aluminum derivative products.’ These have damaged the Constitutional separation of powers, raised prices for American families, imposed tens of billions of dollars in new costs each month on goods-producing American businesses from factories and farms to restaurants and construction sites, and damaged national-security relationships with America’s neighbors and core allies abroad. The American public is deeply and understandably unhappy about all of this.

“In these circumstances, we at PPI are excited and enthusiastic about Finance Committee Ranking Member Wyden’s introduction of the Congressional Trade Powers Reform Act of 2026. Though good policy at any time, it is especially timely in this summer of 2026. His bill is the right response, providing a path back to constitutionally appropriate policymaking, and actual trade policies centered on growth, lower inflation, and revived business competitiveness rather than crank theories and presidential whims.

“By repealing Sections 122 and 338 of U.S. trade law as antiquated and unnecessary, and requiring Congressional votes to approve any use of Sections 301, 232, and 201 of U.S. trade law, Sen. Wyden’s bill would restore the fundamental Constitutional principle that Congress has authority over ‘Taxes, Duties, Imposts, and Excises.’ This will ensure that presidents hoping to use tariffs for policy goals cannot impose their own rates by decree as Mr. Trump has tried to do, but must instead win the assent of Congress. This would structurally improve future policy by confining use of these laws to the occasional cases in which Congress has a consensus that tariffs are an appropriate policy tool; and more immediately provide the public relief on consumer-goods affordability and business costs by terminating Trump administration decrees which do not meet that test. It is good policy and good economics and deserves support.”

Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us at @PPI.

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Media Contact: Ian O’Keefe – iokeefe@ppionline.org