Hungary’s $1 billion film industry, a hub for Hollywood, fears collapse from potential US tariffs and domestic political uncertainty
BUDAPEST: Hungary’s flourishing film industry, dubbed “Hollywood on the Danube”, faces a dual threat from potential US tariffs and domestic political uncertainty.
The sector generates around $1 billion annually, attracting major productions with its interesting locations, cheap labour, and a generous cash rebate scheme.
US President Donald Trump has threatened a 100% levy on movies produced abroad, claiming the US film industry is “DYING a very fast death”.
“It’s like a meteor heading towards Earth,” said Karoly Radnai, managing director of top Hungarian tax firm Andersen.
He warned there is no way to adapt and that such tariffs would be “very bad for us”.
Budapest has become Hollywood’s most important production hub outside the English-speaking world, according to University of Iowa professor Timothy Havens.
He noted the current model is crucial to Hollywood’s bottom line, suggesting producers would find a workaround if tariffs are implemented.
Hungary’s government commissioner for film industry development, Csaba Kael, confirmed the tariff issue has been raised with the Trump administration.
Foreign film productions spent a record $910 million in Hungary during 2023, a four-fold increase over five years.
Kael said these productions bring more than just money, promoting the country’s image and providing valuable experience to local crews.
“The greatest directors and cinematographers are passing on their know-how,” he said.
The industry’s growth was fuelled by a cash rebate scheme adopted in 2004, offering 30% reimbursement on local production spending.
That programme’s future is now uncertain after Prime Minister Viktor Orban’s government suspended new project registrations in June.
Producer Daniel Kresmery warned that while things are working for now, “it could fall apart very easily”.
He urged the government to “show their support properly in the long run again”. – AFP
