Hungary seeks stability with new US economic deal amid eu tensions
Hungarian Prime Minister Viktor Orban has announced a new economic agreement with the USA, designed to shield Hungary from the effects of a potential trade war with the European Union.
Prime Minister Orban shared details of the new economic agreement with the USA, which aims to safeguard Hungary against the potential consequences of a trade conflict between the United States and the European Union. He made this declaration at the annual economic conference of the Hungarian Chamber of Commerce and Industry.
Orban highlighted that Budapest and Washington are collaborating on an economic cooperation package. “The economic agreement between Hungary and the USA will assist us should a trade war arise between the United States and the European Union,” stated the Hungarian Prime Minister.
Hungary's economic neutrality. Orban announces agreement with the USA
The agreement is intended to mitigate the effects of potential US tariffs on products from the EU. Currently, discussions are underway regarding the reinstatement of a tax agreement with the USA, which was terminated by the Joe Biden administration after Budapest resisted the implementation of a global minimum tax.
Prime Minister Orban commented on Hungary's need to maintain "economic neutrality", suggesting the importance of fostering good relations with a range of countries, including China and Russia. “We cannot find ourselves in the same position as the EU, becoming an isolated player in the economy,” Orban observed.
At the end of February, US President Donald Trump announced the introduction of 25 percent tariffs on EU products, claiming the Community "exploits" the United States. Orban cautioned that Hungary, like other EU nations, might experience economic setbacks as a result of such a trade war.
Peter Virovacz, the chief economist at ING Hungary Bank, in an interview with PAP, assessed that, while Orban's good relations with Trump could be beneficial, they are not enough to protect Hungary from the impact of a possible trade war between the USA and the EU. “Hungary will face losses, just like all EU member states. We do not yet know their extent, but it is certain they will occur,” warned the economist.
Hungary is taking steps to prepare for potential economic challenges that may result from trade tensions between the USA and the EU by strengthening cooperation with Washington and striving for economic neutrality.
