For years, Hollywood blockbusters have powered one of Europe's largest film hubs — Budapest.

Now, there are concerns that a proposed 100 percent US tariff on foreign-made movies could affect productions.

In a workshop outside Budapest, Attila Galbóvy builds fantasy from foam.

"There are really two kinds of work – the kind you do by routine, and the kind that pushes you to invent something new," says Galbóvy, co-founder of Artoid Studio.

"That's why I loved working on Alien. Every challenge was unique; we had to create a new world. Other companies couldn't figure out how to do it – but we did."

For more than two decades, Galbóvy and his team have shaped the worlds of Hollywood hits like Dune and Alien.

But he says a US plan to impose a 100 percent tariff on foreign films could be the plot twist that brings the curtain down on their story.

"I'm worried no-one really knows what this will mean," he admits. "Studios plan projects a year ahead, so maybe we'll feel the impact in two or three years. Until then, we just keep working," Galbóvy said.

Economic heartbeat 

Film and TV have become part of Hungary's economic heartbeat, generating nearly $700 million last year. About 90 percent of that money came from Hollywood. Making movies here isn't just an art, but an industry that contributes about one percent to the nation's GDP.

For now, Hungary's studios remain full. Hollywood and European productions are keeping companies like Artoid busy. But there's a growing sense that the boom that turned this city into "Hollywood on the Danube" may be facing its toughest scene yet.

The Trump administration says the tariffs will bring film production back to the United States. But here in Hungary, many believe the import taxes will hurt an industry built on international collaboration.

"I don't know how they are doing that because it makes things more difficult," said György Czutor, owner of Official Films. "You know, there are co-productions; if they are coming here with an American budget, then you can understand that it is easy. But if there is another party in the project – British or European or Asian – then I don't know how this will work."

Hungary's film commissioner, Csaba Káel, says the story isn't over yet.

"The formulation and implementation of potential US protective tariffs that could impact the Hungarian film industry is expected to be a lengthy process," Káel said in a statement to CGTN.

"In the meantime, we continue to engage in discussions with international partners across multiple continents to explore further opportunities for cooperation."

Galbóvy remains determined: "I'm an artist. If no movies come, we'll find another way. We keep enough cash to survive a year. We've done it before."

As the threat of tariffs looms, many here are hoping the credits don't roll on a story they helped bring to life.