‘Globalisation Has Failed’: US Commerce Secretary Delivers Blunt Message At Davos

Last Updated:January 21, 2026, 00:00 IST

Howard Lutnick at the WEF declared globalization has failed the United States, echoing Donald Trump’s America First policy prioritizing domestic industry and national security.

US Secretary of Commerce Howard Lutnick. REUTERS/Leah Millis/File Photo

Speaking in Davos at the World Economic Forum, Howard Lutnick, the US Secretary of Commerce, said decades of policies centred on offshoring, export-led growth and cheap global labour had hollowed out American industry and disadvantaged American workers.

“Globalisation has failed the United States and the West," Lutnick said, arguing that the prevailing economic model had prioritised efficiency and profits over national resilience and domestic employment. He added that the US would no longer support policies that encourage the export of jobs or leave critical industries dependent on foreign supply chains.

His remarks marked a clear reiteration of President Donald Trump’s “America First" economic doctrine, which the administration presented as an alternative to the globalisation-led order long promoted by Western economies. Officials framed the approach as one that places domestic workers, industrial capacity and national security at the centre of policymaking.

Under the administration’s vision, economic sovereignty is defined by tighter control over borders, production and strategic resources. Lutnick said sectors such as pharmaceuticals, semiconductors and industrial manufacturing must be anchored at home or within closely aligned partner nations, rather than outsourced to strategic competitors.

The administration also signalled that future trade and investment decisions would increasingly distinguish between allies and rivals, with supply-chain dependence restricted to countries viewed as politically and strategically reliable. 

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