Hungary Plans Action Amid New EU-US Trade Tariffs

Hungary is set to introduce strategic measures to shield its economy from the effects of a new trade agreement between the United States and the European Union. Prime Minister Viktor Orban announced plans aimed at protecting domestic jobs and manufacturing sectors, following the imposition of a 15% tariff on EU exports including cars, which are central to Hungary's export portfolio.

The agreement, which affects a substantial portion of Hungary's $11 billion yearly exports to the U.S., has sparked major concerns. Orban emphasized the development of two action plans: one to prevent job losses and another to maintain manufacturing operations. The move comes as the nation grapples with high inflation post the Russia-Ukraine conflict.

Political ramifications are also in play, as Orban criticized European Commission President Ursula von der Leyen for negotiating such a deal. As Hungary revises its economic growth forecasts downward, the effects are being felt regionally. Countries like Romania, the Czech Republic, Slovakia, and Poland are also assessing the potential impact on their economies.

(With inputs from agencies.)