In a recent declaration, President Donald Trump criticized the U.S. film industry, stating it was rapidly declining as foreign countries offer various incentives to attract filmmakers and studios away from the United States.

He referred to this trend as a national security threat and announced plans for the Department of Commerce and the Office of the United States Trade Representative to implement a 100% tariff on all films produced abroad that are imported into the U.S., emphasizing a desire for films to be produced in America once again.

This announcement follows a series of drastic economic measures initiated by Trump that have caused considerable fluctuations in global markets.

Earlier this April, he unveiled comprehensive tariff measures targeting nearly every country, resulting in significant losses on Wall Street, estimated to have erased trillions in market value.

However, shortly after introducing these sweeping changes, the White House delayed the implementation of the tariffs for 90 days.

The proposal to extend tariffs to services, including films, marks a new and potentially risky twist in Trump’s economic policy.

Experts warn that such tariffs could disrupt the U.S. economy, particularly in sectors that have become increasingly reliant on service exports.

For instance, the U.S. exported $1.1 trillion in services last year, with an import value of $814 billion, indicating a strong net export position.

Economists suggest that any retaliatory tariffs from other nations in response to Trump's proposal could negatively impact the U.S. economy.

Notably, the film and television production industry has previously sought cheaper locations outside Hollywood, lured by tax incentives offered by various countries.

A report indicates that global spending on content production is expected to reach $248 billion in 2023, with major studios like Disney and Netflix increasingly filming overseas in places like Canada and the UK.

Furthermore, research indicates that nearly half of the expenditures on films and television projects with budgets over $40 million in 2023 will occur outside the U.S. Data from FilmLA reveals a nearly 40% decline in film and television production in Los Angeles over the past decade.

Recent environmental concerns, including severe wildfires in California, have intensified fears that producers may relocate from Los Angeles.

The implications of Trump’s tariff proposal are likely to extend beyond the U.S. borders.

The Hungarian film industry has experienced remarkable growth over the past fifteen years due to tax incentives, infrastructure, and skilled labor.

Major productions like _Black Widow_ and _Alien: Romulus_ have been filmed in Hungary.

However, the potential for a tariff would impact costs, drawing into question whether film production would return to the U.S. Given that film productions commonly take place across multiple countries, the higher costs in the U.S. may deter filmmakers from relocating.

According to industry analysts, the mere threat of tariff implementation may discourage investors and delay project launches in the Hungarian film sector.

Current figures suggest that Hungary's audiovisual services export reached €754.4 million in 2023, with €318.7 million directed to the U.S.

In light of this uncertainty, film industry professionals in Hungary are preparing for potential changes in production dynamics.

Immediate government action may become necessary if the tariff is implemented, as the heightened costs could lead filmmakers to reconsider where to shoot their projects, possibly resulting in a shift towards films not officially classified as American.

The evolving nature of Trump’s economic policies, particularly with respect to globalization, indicates a troubling trend for small, export-oriented economies like Hungary.

The unpredictability surrounding tariff imposition complicates long-term planning for various sectors, especially in service industries that contribute significantly to the economy.

For instance, while the manufacturing sector struggles amidst low demand, services have been paramount to economic growth, highlighting the need for the development of high-value-added services.

As this situation develops, responses from both U.S. and international stakeholders will shape the landscape of film production and the broader entertainment industry in the coming years.

The National Film Institute in Hungary has stayed proactive by maintaining discussions with international collaborators amidst these developments.