Hungary discussing business deal with US to counter tariff impact

LONDON – Hungary and the US are discussing a business deal that could involve cooperation in the space industry and military capabilities, a Hungarian official said on June 18, aiming to offset the impacts of potential US tariffs.

Hungarian Foreign Ministry State Secretary Levente Magyar provided details of the talks on June 18, stating that while a swift agreement is not anticipated, they hoped to reach an agreement on energy, space and military projects.

“We are talking about a few specific projects that could be enveloped into such an agreement,” he told Reuters on the sidelines of an event at the Hungarian Embassy in London. “There’s a lot of room for working together,” he added.

“We very much hope that big things can be done for the benefit of the Hungarian people,” Mr Magyar said, without providing a timeline, as the US administration currently has “a lot on their hands”.

Hungarian Prime Minister Viktor Orban, an ally of US President Donald Trump, said in April that Hungary expected to sign a business deal with the US in six months.

Without providing further detail, Mr Orban said “tariffs will be negative for us, but we negotiate about other economic deals to offset those (tariffs)”.

European Union member Hungary’s car industry is a key driver of its economy but faces a potential hit from US tariffs while the country contends with a slower than expected economic recovery and tries to curb inflation ahead of a 2026 election.

Mr Magyar acknowledged Hungary would not be able to have a separate trade deal with the US given its obligations as an EU member state, but that they still hoped to reach a business deal.

Mr Trump backed away from his threat to impose 50 per cent tariffs on imports from the EU in June, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal. REUTERS