So, here's a thing you might hear at a global economic summit: a call for less globalization. U.S. Commerce Secretary Howard Lutnick did just that at the World Economic Forum in Davos, declaring the decades-long push toward a interconnected global economy a "failed policy" for the West.

"Globalization Has Failed the West, and the United States of America," Lutnick stated bluntly. His argument is pretty straightforward: the model that focused on outsourcing jobs to find the cheapest labor hasn't worked out so well for the U.S. and its workers. Instead, he's pitching what he calls an "America first" approach, suggesting other countries should adopt similar models that put their own national interests and workers first.

Think of it as economic patriotism as a policy prescription.

The Sovereignty Argument

Lutnick's critique goes beyond just jobs. He called on nations to stop being dependent on other countries for things he considers "fundamentally important" for sovereignty—stuff like semiconductors, medicines, and industrial capacity. It's the economic version of not putting all your eggs in a basket held by someone else.

He used Europe as a specific example, questioning the logic of its goal to go net-zero by 2030 while it remains reliant on Chinese-made batteries. The point seems to be: how can you control your environmental destiny if you don't control the supply chain for the key technology? He emphasized the U.S. prioritizing its own resources, like oil and natural gas, to avoid similar dependencies.

"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. He wrapped this nationalist framing in a globally positive bow, adding, "When America shines, the world shines."

The Data and The Debate

Lutnick's stance isn't happening in a vacuum. There's some economic data floating around that supporters might point to. According to the Atlanta Fed's GDPNow model, the economy is projected to post a strong 5.4% annualized expansion in the fourth quarter of 2025. Part of that is attributed to a sharp narrowing in the trade deficit following tariffs implemented under former President Donald Trump.

For the numbers people: the goods and services trade deficit narrowed to $29.35 billion in October 2025. That's a roughly 39% monthly decline and the lowest level since mid-2009. Lutnick has previously stated that GDP was projected to expand by 6% by 2026 due to the Trump administration's policies.

But here's the other side of the coin. Trump's tariff policies have been a constant source of criticism from many economists and experts. The concern is that this "America First" approach in practice can alienate allies and reduce cooperation.

Economist Justin Wolfers argues that trade is fundamentally about cooperation, not just competition. He warns that protectionist views can lead to Americans losing access to goods and services and leave the U.S. with fewer global partners. There's also a concern about using tariffs as a coercive tool in trade negotiations.

Meanwhile, economist David Rosenberg has expressed concerns about underlying issues in the economy and recessionary symptoms, despite a solid 4.3% GDP growth rate in the third quarter. So, even with good headline numbers, the debate over the health and sustainability of this model is very much alive.

What Lutnick did at Davos was frame a major economic and political debate in very stark terms. Is globalization a failed project for Western workers? Should the priority be national sovereignty over global supply chains? The data shows some short-term economic wins for the U.S. under policies aligned with this view, but the long-term consequences—for international relations, for consumers, for the global economic system—are what everyone is really arguing about.