In his first public appearance in Budapest, US chargé d'affaires Robert Palladino stated that American diplomacy under a Trump administration would steer clear of "activism." The diplomat also used the occasion to stress the importance of Hungary further diversifying its energy supply and reducing its dependence on Russian sources.

Speaking at a conference organised by the Hungarian Institute of International Affairs (MKI), Palladino struck a markedly different tone from his outspoken predecessor, David Pressman, who had often addressed human rights and rule-of-law concerns in Hungary.

The United States and Hungary may be on the cusp of a "golden age". Donald Trump's return offers an opening for a reset based on mutual respect rather than ideological battles, he noted.

"We speak the same language as Hungary," he said. 

Palladino's remarks were largely couched in diplomatic generalities, offering little detail on pressing bilateral frictions, such as the impact of the trade war on Hungary's export-heavy automotive sector. For a government heavily invested in Donald Trump's return to power, there were both reassuring signs and implicit warnings, Telex.hu observed.

The envoy repeatedly emphasised "mutual interests" and a return to "traditional diplomacy" based on "common sense". His comments appeared to reward the Hungarian government's loyalty to Trump and its longstanding transatlantic scepticism.

Trade policy under Trump would hinge on reciprocity and fairness, Palladino said, arguing that the US economy faces protectionist barriers abroad despite remaining one of the world's most open markets. He echoed Hungarian Foreign Minister Peter Szijjarto's call for Brussels to take a more active role in transatlantic trade negotiations and praised the country's chief diplomat for blaming Brussels over Washington in the ongoing tariff dispute, which poses a big threat to Hungary's vehicle sector with a 90% export rate.

Palladino used his first public appearance to underscore the strategic importance of nuclear and energy security, delivering what appeared to be a diplomatic nudge to the Hungarian government over its deep energy ties with Russia.

While praising Hungary's role in supporting Trump's Ukraine peace overtures, he also stressed the importance of energy diversification and energy security, and thinly veiled suggestions that Budapest should reconsider its commitment to Russia's Rosatom in building the Paks II nuclear plant and increase its LNG purchase from the US.

The US diplomat pointedly referenced the nuclear power plant expansion, plagued by years of delay, as a matter of national security. "Energy security is national security," he said, adding, "We're optimistic that we can do great things together."

Palladino also flagged small modular reactors (SMRs) as a promising avenue, noting that US companies are already advancing in this field and Hungary could benefit from joining these efforts. "There are companies ready to help," he added, hinting at potential American involvement in Hungary's future nuclear developments.

The Hungarian government appears to be considering a potential U-turn on the €12bn Paks project in favour of smaller, modular nuclear reactors (SMR), a move that signals a possible strategic pivot.

Deepening nuclear cooperation was also on the table at meeting between US State Secretary Marco Rubio and Peter Szijjarto last month. Szijjarto singled out the promise of SMRs, which are quicker and cheaper to deploy than traditional nuclear plants and he praised US-based nuclear technology company Westinghouse as a potential partner.

Critics argue Hungary has failed to deliver meaningful additions to its core energy infrastructure as it pursues heavy reindustrialisation, attracting energy-consuming battery factories from Asia. SMRs could offer a quick solution as the Russia-backed project still lacks a clear timeline and could face further obstacles if EU authorities challenge the legality of its funding or procurement process, as Austria's legal challenge grinds on.

The question of liquefied natural gas (LNG) emerged as another strategic focus in the discussions. Palladino stressed the importance of energy diversification, without naming Russia directly, but made it clear that the US wants its allies to avoid overdependence on any single source. "Hungary is our ally, and we want a strong Hungary. We want to ensure our friends are not dependent," he said.

While diversification is a pragmatic goal in energy policy, Palladino's remarks also served as a gentle signal that US business interests are willing to compete for a larger slice of the Hungarian energy market, potentially at the expense of Russian dominance. His comments align more naturally with Hungary's western alliance, but sit uncomfortably with the Orban government's efforts to maintain strong trade ties with Russia, Telex.hu observed.