US Commerce Chief Declares Globalization a "Failed Policy" at Davos

Speaking on the sidelines of the World Economic Forum in Davos, Lutnick said the policies followed by the West for decades were built around exports, offshoring, and finding the cheapest labour worldwide, but the outcome has been damaging to domestic industries and workers in the US.

"We are in Davos at the World Economic Forum, and the Trump administration and myself. We are here to make a very clear point. Globalisation has failed the West and the United States of America. It's a failed policy," Lutnick said.

He stated that while globalisation was promoted as a way to make the world a better place, in reality, it hollowed out domestic industrial bases and weakened national economies. According to him, the model prioritised offshoring production and far-shoring supply chains, which ultimately left America and its workers behind.

Lutnick said the Trump administration is advocating a different approach under its "America First" policy, one that places domestic workers and national interests at the centre of economic decision-making.

He added that this model is not meant only for the US but is something other countries should also consider.

"And what we are here to say is that America first is a different model, one that we encourage other countries to consider, which is that our workers come first," he said.

He linked economic policy closely with sovereignty, stating that borders and control over critical industries are fundamental to a nation's independence.

Lutnick argued that countries should not offshore essential sectors such as medicines and semiconductors, or their entire industrial base, warning that such dependence weakens sovereignty.

He said, "You should not be dependent on 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."

He also criticised what he described as policy inconsistency in the West, particularly on energy and climate decisions. Referring to Europe's net-zero ambitions, Lutnick questioned why Europe would commit to net zero by 2030 when it does not manufacture batteries. He said such decisions risk making Europe dependent on China, which dominates battery manufacturing.

Overall, Lutnick said the America First approach represents a fundamentally different way of thinking from traditional Western economic policies, emphasising sovereignty, domestic industry and worker-focused growth over unrestricted globalisation.

The 56th Annual Meeting of the World Economic Forum is underway in Davos from January 19 to January 23, 2026, bringing together nearly 3,000 leaders from more than 130 countries at a moment of heightened geopolitical tension, economic uncertainty and rapid technological transformation.

- ANI