Hungary and U.S. Forge Economic Defense Amid Looming Tariffs

Hungary plans an economic cooperation package with the U.S. to bolster its economy against potential tariffs. Prime Minister Viktor Orban emphasized its importance in maintaining an economic buffer amid potential U.S.-EU trade conflicts. This pact could protect Hungary's national interests and reshape existing alliances.

Hungary and the United States are on the verge of finalizing an economic cooperation package aimed at strengthening Hungary's economy amid looming U.S. tariffs. Prime Minister Viktor Orban announced the development, highlighting its potential to mitigate any adverse effects of a potential trade war with the European Union.

Orban, who stands in support of U.S. President Donald Trump, noted that the economic package would deepen the political collaboration between Hungary and the United States. He believes this agreement could safeguard Hungary from the anticipated economic turbulence if the U.S. enacts a trade war with the EU.

Despite limited direct trade exposure between Central and Eastern Europe and the U.S., a new tax treaty and economic measures are in negotiation to buffer against substantial tariffs. Economic experts caution potential impacts on growth, notably through the German car sector, should the proposed tariffs take effect.

(With inputs from agencies.)