Tariff rises could hit Hungary's growth, boost inflation, central bank says

BUDAPEST, March 27 (Reuters) - Stronger trade barriers such as tariffs could dampen Hungary's economic growth and put upward pressure on inflation, the National Bank of Hungary said in its quarterly inflation report published on Thursday.

"Weaker external demand may also dampen domestic export performance. In addition, tariff increases put direct upward pressure on inflation in Hungary," the bank said in one of the alternative economic scenarios laid out in its report.

U.S. President Donald Trump has unveiled a 25% tariff on imported vehicles, expanding a global trade war and prompting criticism and threats of retaliation from affected U.S. allies.