Hungary, a Loyal Trump Ally, Braces for Economic Blow From Tariffs
BUDAPEST — Hungary’s right-wing leader Viktor Orbán has spent years aligning himself with Donald Trump’s nationalist movement, casting Hungary as a model of MAGA-style governance, reported by Arab News. But with sweeping new tariffs looming, even this close political kinship may not shield Hungary from a looming economic storm.
Earlier this month, Trump announced 30% tariffs on goods from the European Union and Mexico, effective August 1 — a move that threatens to roil the $2 trillion transatlantic trade relationship. Hungary, with its export-heavy economy built on automobiles, pharmaceuticals, and fine wines, is especially vulnerable.
“These tariffs would place Hungary in an extremely difficult position,” said Péter Virovácz, chief economist at ING Hungary. “It would essentially close the door to exports to the U.S.”
The United States accounts for about 15% of Hungary’s non-EU exports. That includes products from multinational car manufacturers like Audi and Mercedes, as well as pharmaceuticals — one of Hungary’s top exports to the U.S. Trump has floated imposing tariffs of up to 200% on European pharmaceuticals, which Virovácz warned “would essentially kill” Hungary’s access to the American market.
Small businesses are also feeling the squeeze. Gábor Bánfalvi, co-owner of Taste Hungary, which exports premium Hungarian wines to the U.S., said he may shut down U.S. operations altogether if tariffs hit. “It’s been a passion project,” he said. “But if costs triple, it’s just not sustainable.”
Orbán, a vocal supporter of Trump’s foreign policy, has refrained from directly criticizing the tariffs. Instead, his government blames Brussels for failing to reach a broader trade agreement with Washington. In April, Orbán said his administration was working on “other economic agreements” to soften the impact.
But analysts are skeptical. “Warm political relations can’t override hard economic realities,” said Péter Krekó, director of Political Capital, a Budapest think tank. “Trump’s administration doesn’t hand out favors for free.”
Hungary, he added, “simply doesn’t hold the cards.”
As Trump’s trade agenda takes shape, even his closest ideological allies abroad are finding that friendship alone may not buy economic immunity.
