Hungary Faces Economic Turmoil As US Tariffs Threaten Key Exports

Hungary's economy is bracing for a severe blow as US President Donald Trump's newly imposed tariffs threaten its key exports. This challenge comes despite Hungary's longstanding political alliance with Trump and his populist 'MAGA' movement.

Known for its export-driven economy, Hungary is set to face substantial impacts on its automotive, pharmaceutical, and wine sectors due to the 30% tariffs announced by Trump earlier this year. The tariffs, effective from August 1, target exports from the European Union, of which Hungary is a member.

Economic analysts and industry leaders in Hungary express concern over the sustainability of their business models under such financial strain. Despite attempts by Hungary's government to leverage its political ties with the US for exemptions, experts doubt that political camaraderie will be sufficient to avoid economic setbacks.

(With inputs from agencies.)