US Commerce Secretary Says Globalization Has Failed America

Jan 22, 2026 at 12:13 PM

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Lanka Leader

Globalization has proven to be a failed strategy that has put the United States at a disadvantage, US Commerce Secretary Howard Lutnick said Tuesday at the World Economic Forum in Davos. He accused the forum of promoting a globalist agenda that, in his view, has undermined Western economies.

Speaking to attendees, Lutnick said the Trump administration was determined to make a firm statement. “Globalization has failed the West and the United States of America,” he said, directly criticizing the WEF’s long-standing economic philosophy.

He described globalization as a model built around outsourcing production, moving jobs overseas, and seeking the cheapest labor possible. “That approach has left America behind. It has left American workers behind,” Lutnick argued. He contrasted this with the “America First” approach, calling it an alternative framework that other nations should consider.

President Donald Trump has long been an outspoken critic of globalization, raising the issue throughout his presidential campaigns and at international forums such as Davos. In 2016, he pledged to revive domestic manufacturing and use tariffs to prevent jobs from moving abroad, declaring that the US would no longer give in to what he called the “false song of globalism.”

A decade later, Trump’s economic nationalism has heightened tensions with traditional US allies. Last week, he threatened to impose 10% tariffs on eight European NATO members amid disputes over his proposed annexation of Greenland. In response, the European Union suspended ratification of a major trade agreement with Washington and warned of possible countermeasures.

At the same time, some US allies have pursued closer economic ties with China, Washington’s main economic rival. Canadian Prime Minister Mark Carney announced a preliminary trade agreement with Beijing last week, calling it the start of a “new strategic partnership.”

French President Emmanuel Macron, a leading voice advocating EU retaliation against US tariffs, also urged greater Chinese investment in Europe, particularly in strategically important industries.

During his Davos address, Lutnick further warned that the EU’s goal of achieving net-zero emissions by 2030 could make the bloc increasingly dependent on China, noting that renewable energy systems rely heavily on Chinese-produced batteries.

Later that evening, Lutnick reportedly sparked controversy at a dinner hosted by BlackRock CEO Larry Fink. According to multiple media accounts, he delivered another speech critical of Europe, prompting European Central Bank President Christine Lagarde to leave the event and leading organizers to cancel the dinner before dessert was served.