Budapest and Washington are preparing an agreement to boost US investment, according to Hungary’s leader
Hungary is preparing a significant economic agreement with the United States, Prime Minister Viktor Orban has announced. The EU country has been pursuing closer ties with Washington just as President Donald Trump threatens to impose tariffs on goods from the bloc.
In an interview with state-owned Kossuth Radio on Friday, Orban noted that during the administration of former US President Joe Biden, Chinese investments in Hungary surpassed those from the United States. He said that situation needed to be addressed.
China was the largest foreign investor in Hungary in 2024, contributing nearly half of the year’s total investment value, Hungarian Foreign Minister Peter Szijjarto said in January. Figures for US investment were not readily available. According to official statistics, China was also Hungary’s largest trading partner outside the European Union in 2023, with bilateral trade reaching $14.5 billion. Trade turnover between the US and Hungary was approximately $13.9 billion in the same year.
”We are preparing to make an economic deal of significant size and seriousness with America. I agreed with President Trump even before he was elected that there would be such a deal,” said Orban, as quoted by local media.
Hungarian MP and senior member of the ruling Fidesz party Tamas Menczer stated earlier this week that the growing alliance between Orban and Trump serves as “a mirror for Brussels” that shows its “failures.”
Hungary has been actively pursuing stronger economic ties with the United States. In January, the government appointed a ministerial commissioner responsible for boosting investment and business relations with the US. The two sides are also discussing a new double taxation agreement to prevent individuals and businesses from being taxed in both countries. The previous deal was unilaterally terminated by Washington in 2022.
At the same time, Orban remains committed to Hungary’s economic sovereignty. In September, he announced an “economic neutrality” strategy, emphasizing the nation’s intent to engage in mutually beneficial economic relations with whomever it chooses, based on its interests.
Budapest has maintained ties with Russia despite Ukraine-related sanctions imposed on Moscow by the EU and US.
The Orban government has continued energy cooperation with Moscow, securing long-term agreements for imports of natural gas. Hungary has repeatedly opposed EU sanctions on Russian energy, arguing that they would harm its economy and energy security.
Orban’s announcement comes as Trump threatens to impose tariffs on EU goods, citing concern over trade imbalances and what he perceives as unfair business practices by the bloc. He has also demonstrated a preference for dealing with individual member states rather than Brussels. No union-wide officials were invited to Trump’s recent inauguration, with Italian Prime Minister Giorgia Meloni being the only EU leader in attendance.
