FAMAGUSTA GAZETTE – Hermann Simon, a German economist and creator of the “hidden champions” theory, criticized U.S. tariffs under President Donald Trump, calling them politically motivated and harmful to global trade.
In an interview with Chinese media, Simon warned that escalating trade measures could disrupt intricate global supply chains and inflict lasting structural damage.
Simon highlighted the U.S.’s significant trade surplus in services, which exceeded $1 trillion in 2023 and reached a $293 billion surplus in 2024.
However, this advantage is often overlooked in favor of emphasizing goods deficits, he said.
“Tariffs raise prices and fuel inflation, ultimately hurting those they claim to protect,” Simon added, noting the adverse impacts on consumers and businesses.
He also expressed concern over the unpredictability of tariff policies, which paralyze long-term investment decisions and weaken economic growth.
Citing examples like iPhones and BMWs, Simon explained how tariffs threaten international production networks. He urged a return to a fair, open multilateral system, cautioning against policy mistakes reminiscent of the Smoot-Hawley Tariff Act of 1930.