Hungarian Prime Minister Viktor Orbán announced on Friday that his government will develop two emergency action plans to protect jobs and manufacturing in response to a new U.S.-EU trade agreement that introduces higher tariffs on European exports.
Speaking to public radio, Orbán said the trade deal, unveiled Sunday, imposes a 15% tariff on EU exports to the United States, including cars, a core sector for Hungary and other Central European economies, which were previously subject to a 2.5% levy.
“Hungary exports about $11 billion worth of goods to the U.S. annually,” Orbán stated. “We must prepare two action plans, one to protect jobs, and another to ensure manufacturing plants in Hungary remain open despite these new tariffs.”
Orbán emphasized the need to act swiftly to avoid layoffs by foreign firms operating in Hungary. If job losses do occur, the government intends to provide immediate alternative employment to affected workers. The second plan, he added, will focus on preventing plant closures and supporting continued industrial activity, particularly in the automotive sector.
The announcement comes as Hungary’s economy continues to struggle with the lingering effects of Europe’s highest inflation surge, following Russia’s 2022 invasion of Ukraine. On Tuesday, the Economy Ministry cut Hungary’s 2025 growth forecast from 2.5% to just 1%, underscoring the pressure facing Orbán’s government ahead of next year’s closely contested national election.
Orbán also criticized European Commission President Ursula von der Leyen, accusing her of striking a poorly negotiated deal that failed to safeguard European industry.
While Hungary has not yet published an estimate of the tariffs’ direct impact on its GDP, regional counterparts have expressed concern. Romania’s largest employers’ group, Concordia, warned of a 0.2% drag on growth, while the Czech finance ministry forecast a similar slowdown. Slovakia, the EU’s most export-reliant economy, could see GDP shrink by 0.87%, according to analysts at Societe Generale. In Poland, Prime Minister Donald Tusk projected a loss of 8 billion zlotys ($2.14 billion) due to the tariffs.
As Hungary begins crafting its policy response, observers say Orbán is walking a tightrope — balancing economic stability with growing domestic and regional dissatisfaction over the EU’s trade approach to Washington.
Written By Rodney Mbua
