500% tariffs? Shocking new US proposal could wreck Hungary’s economy!
Change language:
A group of US senators (both Democrats and Republicans) has put forward a package of sanctions that could have serious economic consequences for many countries (including Hungary) around the world, especially those that continue to buy significant amounts of Russian energy.
According to Bloomberg, one of the most stringent measures proposed is the imposition of a 500% tariff on imports into the US market for countries that do not renounce their purchases of Russian oil, gas and uranium.
Hungary is one of the countries whose economy and energy supply could be significantly affected by this measure. At present, more than 80% of Hungary’s oil imports come from Russia and its natural gas supply is also heavily dependent on Russian sources. According to Portfolio, under the new US proposal, Hungary could face a choice between gradually cutting its dependence on Russian energy sources or facing the loss of the US market and a significant tariff burden.
The effect on the Hungarian economy
Hungarian companies export around USD 9 billion worth of goods to the United States every year. A 500% tariff could drastically reduce the competitiveness of Hungarian exporters, leading to serious economic problems in many industries. In particular, the automotive and electronics sectors, as well as the food industry, could be affected, as these are the main pillars of Hungarian exports. If the US does impose tariffs, the Hungarian government will be forced to look for alternative markets for the products concerned.
Hungary faces two possible paths, one option could be to diversify its energy sources at an accelerated pace. One way to do this is to move towards a fast transition from Russian to Russian crude oil. MOL estimates that the earliest date for a full divestment from Russian crude is the end of 2026. The other option is that Hungary continues to opt for Russian energy, and US punitive tariffs could make Hungarian exports to the US significantly more expensive. This could lead to a restructuring of export markets and a possible economic downturn.
It would be funny to hear fidesz if this proposal goes ahead. Surely will be all the fault of Ursula von der leyen or the war mongers. Never Russia or Hungary.
Orban – his Fidesz Government – we KNOW are historically the BLAMERS of “others”.
WE know the GUILT of the Orban led Fidesz Government, the “heinous” acts, there abuse the falseness of there agenda, the FABRICATION of Truth & Facts – never GUILTY of a crime, even when – has FACTUALLY been the case through the Courts of Justice the European Union – over acts of Fraud and funding misappropriation – taking the position of being not of GUILT.
The accusatory style belongs to those who always try to ACCUSE others.
Orban – his “heinous” Fidesz Government – have GOVERNED us – Hungary for (16) sixteen years – by ACCUSING – others.
Orban & his Fidesz Government have ACTED – as absent PROMOTERS of Justice.
Its a DEVILISH behaviour / style and in the “toxic culture” of Orban and his Fidesz Government that biblically is referred to as being one of the “great accuser” – the DEVIL – who always ACCUSES others.
A 500% tariff would not just “reduce competitiveness” but would bring Hungarian exports to the US to a complete halt. Viktor Orban was championing a Trump win as something so fabulous for Hungary and now what did you get? Orban please go on television now and tell us how Donald Trump is going to save the world and bring such joy to Hungary.
Larry -if you looking for news on US tariffs — – this is the place of daily LGBTBS (must be old photo – no Hanmas flags in crowd) and celebs coming to town, Wizz Air-and Orban dictator. You wont find US base 35k troops to move hungary- maybe more. Trump considers Hungary to be the biggest partner in Europe – he has no time for EU BS.
I just hope they keep us updated on Will Smith to visit, one of the biggest jerks in the business.
Wait! Mr. Trump is Mr. Orbán BFF! MAGA loves Hungary!
I am almost certain our Politicians will arrange an exception – Hungary is so special. Also consider the current EU tariffs, our ESTA issue, our Tax Treaty, Mr. Rogáns blacklisting…