Hungary seeks economic neutrality with new U.S. agreement
Hungarian Prime Minister Viktor Orban announced a new economic agreement with the USA. It aims to protect Hungary from the effects of a potential trade war with the European Union.
Hungarian Prime Minister Viktor Orban reported on the conclusion of a new economic agreement with the USA, which is intended to shield Hungary from the potential effects of a trade war between the United States and the European Union. Orban announced this during the annual economic conference of the Hungarian Chamber of Commerce and Industry.
Orban emphasized that Budapest and Washington are working on an economic cooperation package. "Hungary's economic agreement with the USA will help us in the event of a potential trade war between the United States and the European Union," said the Hungarian Prime Minister.
Hungary's economic neutrality. Orban discusses agreement with the USA
The goal is to mitigate the effects of potential American tariffs on products from the EU. Negotiations are currently ongoing regarding the return to a tax agreement with the USA, which was terminated by Joe Biden's administration after Budapest resisted implementing a global minimum tax.
Prime Minister Orban noted that Hungary should maintain "economic neutrality," which means keeping good relations with various countries, including China and Russia. "We cannot end up in a situation like the EU, which is an isolated player in the economy," assessed Orban.
At the end of February, former U.S. President Donald Trump announced the introduction of 25% tariffs on products from the EU, arguing that the Union "takes advantage" of the United States. Orban warned that Hungary, like other EU countries, could suffer losses as a result of such a trade war.
The chief economist of ING Hungary Bank, Peter Virovacz, in an interview with PAP, assessed that good relations between Orban and Trump are not enough for Hungary to avoid the effects of a possible trade war between the USA and the EU. "Hungary will suffer losses, just like all EU member states. We do not know their extent yet, but we can be sure it will happen," warned Orban.
Hungary is trying to prepare for potential economic challenges that may arise from trade tensions between the USA and the EU by strengthening cooperation with Washington and striving for economic neutrality.
