BUDAPEST, March 8, 2025 – In a significant move aimed at strengthening bilateral ties, Hungary and the United States are set to finalize an economic cooperation package, Hungarian Prime Minister Viktor Orban announced at the annual conference of the Hungarian Chamber of Commerce and Industry.
The agreement, which builds on the existing political alliance between the two nations, is designed to support the Hungarian economy and mitigate potential adverse effects stemming from U.S. tariff policies. “Hungary will suffer losses [in a trade war], just like all European Union member states. We do not yet know its extent, but we can be sure that it will happen,” Orban stated, addressing concerns over the possibility of a U.S.-EU trade conflict.
The proposed package comes at a time when U.S. President Donald Trump has recently signaled his administration’s intention to impose a 25% tariff on European Union goods—a move he claimed was necessary to address trade imbalances. In response, Hungarian officials are also engaged in discussions to renew a tax treaty that had been terminated by the previous U.S. administration, a measure expected to further cement economic cooperation between the two nations.
Key elements of the new agreement are aimed at providing compensation in both monetary and real economic terms to offset the losses Hungary might incur if the proposed tariffs take effect. While Central and Eastern Europe’s direct trade exposure to the United States remains relatively limited, experts warn that broader economic repercussions could emerge—particularly through impacts on the German automotive sector, a critical driver for the region’s growth.
As negotiations continue, the economic package stands as a strategic initiative to shield Hungary from the ripple effects of a potential trade war, reinforcing the nation’s commitment to navigating global economic uncertainties through strengthened international alliances.
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