At the World Economic Forum in Davos, Commerce Secretary Howard Lutnick criticized globalization for being a “failed policy” for Western nations and highlighted the importance of America’s economic success for the world.
“Globalization Has Failed the West, and the United States of America,” stated Lutnick.
Lutnick, on Tuesday, argued that the current model, which focuses on exporting jobs and finding the cheapest labor, has left the U.S. and its workers behind. He also urged other countries to consider an “America first” model, prioritizing their workers and national sovereignty.
Lutnick Calls Out Europe
The Commerce Secretary called on nations to stop being dependent on other countries for semiconductors, medicines, industrial bases, or any other areas that are “fundamentally important” for their sovereignty.
In this context, he also questioned the logic of Europe’s decision to go net zero by 2030 when it is reliant on Chinese-made batteries.
Lutnick emphasized the importance of the U.S. prioritizing its own resources, such as oil and natural gas, and not becoming dependent on other nations.
“America first is the job of our government to take care of our workers to make sure their lives are better for it and then don’t be America alone, right? But be America first,” he said.
The Commerce Secretary also added that a strong U.S. economy benefits the world. “When America shines, the world shines,” he stated.
GDP Jumps As Critics Sound Alarm
According to the Atlanta Fed’s GDPNow model, the economy is also set to post a strong expansion in the fourth quarter of 2025 to 5.4% annualized, partly due to a sharp narrowing in the trade deficit following tariffs implemented under President Donald Trump.
The goods and services trade deficit narrowed to $29.35 billion in October 2025, marking a roughly 39% monthly decline and the lowest level since mid-2009.
Previously, Lutnick stated that the GDP was projected to expand by 6% by 2026 due to the Trump administration’s policies.
Meanwhile, Trump’s tariff policies have received constant criticism from experts amid concerns of the U.S. being alienated from its allies.
He has also received backlash for using tariffs as a coercive tool to influence trade deals with other nations. Economist Justin Wolfers argued that trade is about cooperation rather than competition, warning that Trump’s protectionist views cause Americans to lose access to goods and services and leave the U.S. with fewer global partners.
At the same time, economist David Rosenberg expressed concerns about underlying issues with the economy and recessionary symptoms despite a 4.3% Q3 GDP growth rate.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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