As Trump threatens 100% tariffs on overseas film productions, will studios say ‘bye bye’ to beautiful Budapest?

Trump is unleashing yet another potential dispute with his "good friend" Orbán

FILE - President Donald Trump welcomes Hungarian Prime Minister Viktor Orbán to the White House in Washington, on May 13, 2019. (AP Photo/Manuel Balce Ceneta, File)
By Liz Heflin
3 Min Read

U.S. President Donald Trump has posted to his Truth Social page that he wants to restore the film business after it was “stolen” by foreign countries, slamming California Governor Gavin Newsom for making it so easy for them to do so, “like stealing ‘candy from a baby.” 

California has recently announced new incentives to help keep film production in Hollywood, a move that sent a loud message to popular low-cost production locations on the other side of the Atlantic, including Hungary. But clearly, Trump did not think the rebates provided were enough. 

“California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long-time, never-ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States,” Trump continued. 

Just a couple weeks ago, Remix News reported on Hollywood’s ploy to win back studio business. Starting in July, California will now allocate $750 million (up from $330 million) to its Film & Television Tax Credit Program, known as Program 4.0, with eligible projects now including animated films and short-format TV shows. Plus, the credit is now a 35-40 percent refundable incentive. 

Budapest has become a hot spot for movie-making, with films such as Dune, Blade Runner 2049, Alien: Romulus, The Martian, Ballerina (John Wick), and F1, to name just a few. 

The city is known for its own generous tax incentives, as well as top studios, and production talent — from pre-production set design to film crews and post-production editing. The architecture also allows the city to double for many European capitals. 

In response to Governor Newsom’s announcement, Origo Studios CEO Márta Horváth told Remix that they are confident Budapest will remain “a world-class production hub.“ However, she also warned that “it is essential that registrations are accepted and processed in line with real production needs, so that projects can begin work as scheduled.”

Budapest Reporter echoed this sentiment, stating that “Faster permitting and less union complexity mean a shorter path from prep to wrap.”

As to the threat of 100 percent tariffs. Who knows. 

This may be yet another thorn in the side of the friendship between Trump and Hungarian Prime Minister Viktor Orbán. The American president has insisted that all EU and NATO members stop buying Russian energy products, although it appears that Hungary has gained an exception from the White House on this front for now.

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