Gina Raimondo on How European Industry Is Getting Crushed

In this live episode of Odd Lots, hosts Joe Weisenthal and Tracy Alloway sit down with Gina Raimondo, former U.S. Commerce Secretary and Governor of Rhode Island, to discuss the deteriorating state of U.S.-European relations and the broader implications for global economic security. Raimondo argues that the current administration's confrontational approach toward allies—particularly Europe—undermines America's ability to compete with China, especially in critical technology sectors. She warns that China's aggressive export strategy, including subsidized imports into Europe, is devastating European industrial bases, particularly in Germany’s chemical and automotive industries. Raimondo emphasizes that a strong, innovative Europe is not just in Europe’s interest but essential for U.S. national security and economic resilience. She calls for a bipartisan, pragmatic approach to industrial policy, citing the CHIPS Act as a model that succeeded due to its bipartisan support, while cautioning that even with progress, the U.S. remains vulnerable due to reliance on foreign supply chains for chip packaging, chemicals, and critical minerals. The conversation shifts to AI, where Raimondo expresses deep concern about the social and political fallout from rapid automation, stressing that winning the AI race requires not just technological leadership but robust transition systems to support displaced workers. She advocates for innovative policies—like unemployment insurance tied to entrepreneurship and corporate incentives for job creation—to prevent civil unrest and ensure democratic stability. Raimondo also reflects on her own career, including dropping out of Columbia University, and shares optimism from her recent work with small business owners in Indiana who are using AI to grow their enterprises. She underscores that while AI will disrupt jobs, it also creates opportunities for new small businesses, especially when supported by forward-thinking public policy. She warns against waiting for a crisis before acting, urging governments and companies to experiment now with new models of workforce transition. Ultimately, she calls for a recalibration of U.S. foreign and economic policy: to rebuild trust with allies, diversify supply chains beyond China, and prioritize practical cooperation over ideological rigidity. Her vision is one of 'polyamorous' global partnerships—flexible, pragmatic alliances with democracies and strategic partners across Southeast Asia, Africa, and Latin America—rather than rigid blocs. The episode closes with a call to action: innovation must be matched by inclusive social infrastructure to ensure that technological progress translates into broad-based prosperity.