U.S. Commerce Secretary Howard Lutnick declared on Tuesday that globalization has failed Western economies and the United States, arguing it hollowed out domestic industry, left workers behind and created dangerous dependencies on foreign supply chains.
Speaking on a World Economic Forum panel titled “Prosperity: Sovereign Yet Connected?” alongside Canadian Minister of Innovation, Science and Industry François-Philippe Champagne, British Chancellor of the Exchequer Rachel Reeves, Columbia University historian Adam Tooze, Bank of America CEO Brian Moynihan and EY Chair and CEO Janet Truncale, Lutnick framed the Trump administration’s approach as a shift toward prioritizing national workers and sovereignty.
“The Trump administration and myself, we are here to make a very clear point. Globalization has failed the West and the United States of America. It’s a failed policy,” Lutnick said. “It is what the W has stood for which is export offshore farshore find the cheapest labor in the world and the world is a better place for it. The fact is it has left America behind. It has left the American workers behind.”
He advocated for an “America First” model that places domestic workers first while encouraging allies to adopt similar policies. “Sovereignty is your borders. You’re entitled to have borders. You shouldn’t offshore your medicine. You shouldn’t offshore your semiconductors. You shouldn’t offshore your entire industrial base and have it be hollowed out beneath you,” Lutnick added. “You should not be dependent for that which is fundamental to your sovereignty on any other nation. And if you’re going to be dependent on someone, it darn well better be your best allies.”
Globalization has FAILED.
— U.S. Commerce Dept. (@CommerceGov) January 20, 2026
Secretary Lutnick at the World Economic Forum:
“The Trump Administration and I are here to make a very clear point—globalization has failed the West and the United States of America. It’s a failed policy… and it has left America behind.”
America is… pic.twitter.com/Urxl7pZwSe
Lutnick criticized Europe’s pursuit of net-zero emissions by 2030, noting the continent lacks domestic battery production and would become “subservient to China who makes the batteries.” He contrasted this with U.S. advantages in oil and natural gas, saying reliance on electricity and electric vehicles suits China’s resource profile but not America’s.
The commerce secretary emphasized that a strong America benefits the global economy. “When America shines, the world shines,” he said. “Close your eyes and think of a world without America in it. It becomes pretty dark pretty darn quickly.” He pointed to rising global stock markets despite U.S. tariff policies as evidence that stability flows from American strength.
When pressed on Greenland and U.S. demands for the territory, Lutnick declined to elaborate, saying it was a matter for national security officials. “The Western Hemisphere is vital for the United States of America. Our national security people are on it and they care about it,” he said, adding that the U.S. role is essential to global security.
Panelists from allied nations offered nuanced responses. Reeves acknowledged the need for economic security and resilience, coining “securomics” to describe building strength in supply chains after disruptions like the pandemic and Russia’s invasion of Ukraine. She emphasized the UK’s strengths in defense, life sciences and financial services while stressing alliances and reducing trade barriers.
Champagne highlighted the unprecedented speed, scope and scale of change in geopolitics, supply chains and technology, calling for partnerships to build resilience in critical minerals and energy. He noted Canada’s geographic integration with the U.S. and role as a major supplier.
From the private sector, Moynihan stressed balancing sovereignty with attractiveness to foreign investment, noting U.S. final demand drives growth and that deregulation could accelerate activity. Truncala described globalization as more complex but enduring, with companies scenario-planning amid geopolitical risks and prioritizing resiliency.
Audience questions touched on central bank independence, potential retaliatory tariffs, China’s role and market credibility. Lutnick defended U.S. policy as fostering discussion rather than conflict, predicting durable trade deals with Europe and the UK through diplomacy.
The panel reflected broader Davos debates on shifting from open globalization to models emphasizing national resilience and alliances in an era of economic nationalism.
