Headlines
Hungary government to draw up plans to protect jobs after US-EU trade deal
Published by Global Banking and Finance Review
Posted on August 1, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 1, 2025
2 min readLast updated: January 22, 2026
Hungary plans to protect jobs following a US-EU trade deal imposing 15% tariffs on exports, affecting Hungary's $11 billion trade with the US.
BUDAPEST (Reuters) -Hungary's government will draw up plans to protect the country's jobs and manufacturing after the trade deal between the United States and the European Union, Prime Minister Viktor Orban told public radio on Friday.
The U.S. and the EU announced a trade agreement on Sunday setting a 15% tariff on the bloc's exports to the United States. The levy includes cars, a mainstay of central European exports, which previously incurred a tariff of 2.5%.
Orban said Hungary's total exports to the United States were worth some $11 billion a year.
"We have to draw up two action plans, one is an action plan to protect jobs, to make sure that foreign companies working in Hungary do not react by laying off people. Or, if they do, we need to offer those people jobs immediately," Orban said.
The second plan was needed to make sure no manufacturing plants were shut down as a result of the tariffs, said Orban, who has struggled to revive Hungary's economy from the EU's worst inflationary surge following Russia's 2022 invasion of Ukraine.
Orban, who faces what political analysts say will be a closely-fought election next year, sharply criticised European Commission President Ursula von der Leyen on Monday for what he said was a poorly negotiated deal.
Hungary's government has not published an estimate about the tariffs' impact on growth, although the economy ministry slashed its 2025 economic growth forecast to 1% on Tuesday from the 2.5% it expected at the start of the year.
Concordia, Romania's largest employers' association, has estimated the tariffs could shave up to 0.2% off the country's growth while the Czech finance ministry said tariffs would slow expansion there by 0.2 percentage points for the remainder of the year.
For neighbouring Slovakia, whose share of goods' exports as a percentage of national output is the highest in the EU, Societe Generale economists have estimated the tariff impact at 0.87% of gross domestic product.
Polish Prime Minister Donald Tusk said Poland, the EU's largest economy outside the euro zone, could lose around 8 billion zlotys ($2.14 billion) due to the new U.S. import tariffs.
($1 = 3.7381 zlotys)
(Reporting by Anita Komuves and Gergely Szakacs; Editing by Kate Mayberry)
Hungary's government plans to create two action plans to protect jobs and ensure that foreign companies do not lay off workers due to the new tariffs.
The tariffs are expected to slow economic growth, with Hungary's economy ministry reducing its 2025 growth forecast from 2.5% to 1%.
Hungary's total exports to the United States are valued at approximately $11 billion annually.
Prime Minister Orban criticized European Commission President Ursula von der Leyen for what he described as a poorly negotiated trade deal.
The trade agreement sets a 15% tariff on the European Union's exports to the United States, including cars, which are significant for Central European economies.
Explore more articles in the Headlines category
