Hungary seeks economic shield against potential United States-European Union trade war

Hungary is moving to secure its economic future as Prime Minister Viktor Orban announced plans for a cooperation package with the United States that could cushion the country from potential American tariffs on European goods (via Reuters).

Orban, a close ally of U.S. President Donald Trump, sees the deal as an opportunity to strengthen bilateral ties while safeguarding Hungary's economy from collateral damage if a trade war between the United States and the European Union erupts.

With Washington threatening hefty tariffs on European exports, including those crucial to Hungary's industrial base, officials in Budapest are negotiating ways to mitigate the fallout, including reviving a tax treaty scrapped by the previous American administration.

While Hungary's direct trade exposure to the U.S. is limited, its heavy reliance on Germany's auto sector makes it vulnerable if Trump's proposed 25% tariffs take effect, potentially disrupting supply chains and slowing economic growth across Central and Eastern Europe.