Hungary is preparing a major economic agreement with the United States, Prime Minister Viktor Orban announced on February 7. The EU nation has been actively pursuing stronger ties with Washington just as US President Donald Trump, now back in office, signals his intent to impose tariffs on European goods. This development underscores Orban’s strategy of balancing relations between major global players, including China, the US, and Russia, while challenging the European Union’s economic and political orthodoxy.

Speaking in an interview with state-owned Kossuth Radio, Orban emphasized the need to bolster US investments in Hungary. He pointed out that during the administration of former US President Joe Biden, Chinese investments in Hungary had surpassed American investments, a situation he believes requires correction.

China emerged as Hungary’s top foreign investor in 2024, contributing nearly half of the nation’s total investment value, according to Hungarian Foreign Minister Peter Szijjarto. Bilateral trade between China and Hungary reached $14.5 billion in 2023, surpassing the $13.9 billion trade turnover between Hungary and the United States. While US investment figures have not been disclosed, Orban’s push for a comprehensive economic agreement with Washington signals his desire to rebalance Hungary’s foreign economic relations.

“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,” Orban stated, as quoted by local media.

Hungarian MP and senior Fidesz party member Tamas Menczer framed Orban’s growing alliance with Trump as a direct challenge to the European Union, calling it “a mirror for Brussels” that highlights its failures. Orban’s government has long been at odds with EU leadership over issues such as migration, energy policy, and national sovereignty.

Hungary has actively pursued closer economic ties with the United States, going so far as to appoint a ministerial commissioner responsible for enhancing investment and business relations between the two nations. In addition to the proposed economic deal, Budapest and Washington are discussing a new double taxation agreement to prevent individuals and businesses from being taxed in both countries. The previous agreement was unilaterally terminated by the US in 2022, further straining relations.

Despite these overtures toward Washington, Orban has remained steadfast in his commitment to economic sovereignty. In September, he unveiled an “economic neutrality” strategy, which stresses Hungary’s right to establish economic partnerships based on its own interests rather than ideological alignments.

Hungary’s balancing act has seen it maintain ties with Russia despite the Ukraine-related sanctions imposed by the EU and US Budapest continues its energy cooperation with Moscow, having secured long-term agreements for natural gas imports. Orban has repeatedly opposed EU sanctions on Russian energy, arguing that they would inflict severe economic harm on Hungary and compromise its energy security.

This pragmatic approach has positioned Hungary as an outlier within the EU, which has broadly aligned with the US on economic and geopolitical policies. However, Orban’s strategy of pursuing relationships with multiple major powers-China, Russia, and now a reinvigorated economic partnership with the US-reflects his broader vision of Hungary as a sovereign actor that does not necessarily adhere to Brussels’ directives.

Orban’s announcement comes at a time when Trump is threatening to impose tariffs on European goods, citing concerns over trade imbalances and what he perceives as unfair business practices by the bloc. Trump’s preference for bilateral deals over working with the EU as a collective entity aligns with Orban’s own approach to economic diplomacy. Notably, during Trump’s recent inauguration, no high-ranking EU officials were invited, and Italian Prime Minister Giorgia Meloni was the only European leader in attendance.

For Hungary, this shifting dynamic could present both opportunities and risks. If Trump follows through with tariffs on EU products, Hungary may find itself in a position to negotiate more favorable trade terms with the US than other EU member states. This could further exacerbate tensions between Budapest and Brussels, as Hungary’s independent maneuvering has frequently clashed with EU interests.

The broader implications of Hungary’s pending economic deal with the US are significant. If Orban successfully secures a large-scale agreement with Washington, it could encourage other EU states dissatisfied with Brussels’ leadership to explore similar arrangements. Countries with strong nationalist movements or economic grievances against the EU might view Hungary’s strategy as a model for diversifying their economic partnerships beyond the bloc.

At the same time, Hungary’s deepening relationship with the US under Trump could serve as a counterbalance to its extensive Chinese investments. While Beijing has played an increasingly dominant role in Hungary’s economy, particularly in sectors like manufacturing and infrastructure, Orban’s outreach to Trump suggests that he does not want Hungary to be overly reliant on China.

Orban’s decision to forge a significant economic deal with the US while maintaining ties with China and Russia represents a high-risk, high-reward strategy. If successful, Hungary could emerge as a key economic player that balances relationships among the world’s major powers while retaining its sovereignty. However, the move could also deepen Hungary’s isolation within the EU, inviting further scrutiny and potential pushback from Brussels.

As Trump’s administration moves forward with its trade policies and Orban finalizes negotiations with Washington, the coming months will reveal whether Hungary’s pivot toward the US will strengthen its economic standing or further strain its relationship with the European Union. Regardless of the outcome, Orban has once again positioned Hungary as a maverick state within the EU-one willing to defy Brussels in pursuit of its own strategic interests.

Please follow Blitz on Google News Channel