‘Globalisation failed the West and US’: says US commerce secretary Howard Lutnick at Davos 2026

US Commerce Secretary Howard Lutnick has said that globalisation has proved to be a failed policy as it has failed the West and the United States. Lutnick said that the Trump Administration is very clear that the existing global economic model has left American workers behind. Speaking in Davos, on the sidelines of the World Economic Forum, Lutnick said the policies followed by the West for decades on exports, offshoring, and finding the cheapest labour worldwide damaged the domestic industries and workers.

“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.

‘Globalisation hollowed out domestic industrial bases’

Globalisation was promoted as a way to make the world a better place, but in reality, it hollowed out domestic industrial bases and weakened national economies. The model prioritised offshoring production and far-shoring supply chains, which left America and its workers behind in the long run, he added.

Under its ‘America First’ policy, the Trump administration is advocating a different approach, placing domestic workers and national interests at the centre of economic decision-making, said Lutnick, adding that other countries should also consider adopting this model.

“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.

Linking economic policy closely with sovereignty, he said that control over critical industries is fundamental and argued that countries should not offshore essential sectors like medicines and semiconductors.

“And if you’re going to be dependent on someone, it darn well better be your best allies."

‘Europe’s carbon neutrality goals mean becoming dependent on China’

He pointed out the West’s policy inconsistency on energy and climate and questioned why major European countries are focusing on developing solar and wind energy to achieve ‘carbon neutrality’ goals when they don’t have the battery manufacturing capabilities.

“Committing to carbon neutrality by 2030 is no different from deciding to become dependent on battery-producing China,” he added.

‘Lutnick is factually wrong. Why engage in convenient deception’

Reacting to Lutnick’s comments, India’s former foreign secretary Kanwal Sibal said no one forced globalisation on the US, and it was, in fact, the main force behind it.

“The US itself was the main force behind globalisation. It was made possible by the collapse of the Soviet Union and US unilateralism that followed. Globalisation was a product of the belief in the end of history in US circles. Globalisation became integral to the unchallenged assertion of America’s global hegemony,” he said in a post on X.

“The US let this happen as it preferred to concentrate on maintaining its advance in high technology areas and wield its financial domination,” he said,

“Lutnick is factually wrong. Why engage in convenient deception?” he said.

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.