A favourable US-Hungary business deal can be hammered out in background talks

Reuters spoke with Deputy Foreign Minister Levente Magyar on the sidelines of an event at the Hungarian Embassy in London. Magyar stated that ongoing negotiations with the United States aim to reach a new business deal favourable to Hungary—one that could help steer the economy back onto a growth path. This would be a much-needed development ahead of the 2026 general elections.

PM Orbán needs investment and foreign capital

As reported yesterday, the latest poll by Medián, a Hungarian polling institute, shows a significant lead for the Tisza Party over Viktor Orbán’s Fidesz. Although Tisza’s leader, Péter Magyar, was relatively unknown until February, if the polls are accurate, he now commands enough support to potentially secure a supermajority in the next election—enabling him to begin dismantling the system Orbán has built over the past 15 years with successive two-thirds majorities.

Meanwhile, Hungary’s economy continues to struggle. For instance, between April 2024 and April 2025, the 15 largest factories in Hungary laid off more than 4,600 employees. At the same time, the government is planning significant financial measures ahead of the elections, including tax cuts and support for the SME sector. As a result, securing foreign capital has become urgent.

Separate trade deal off the table

Under the Biden administration, US-Hungary relations have deteriorated. One example is Washington’s unilateral termination of the double taxation agreement, which has made business more difficult for both Hungarian and American investors. Furthermore, despite previously warm relations between Donald Trump and Viktor Orbán, the current US administration appears determined to introduce steep tariffs on EU exports—including the automotive sector, a key pillar of Hungary’s economy. A proposed 50% tariff on car exports could lead to a sharp contraction and further job losses, a serious threat in the run-up to parliamentary elections.