German investments in US nearly halved in Trump's first year back, report shows
German firms cut US investment to €10.2 billion in 2025, a 45% drop from 2024, amid tariffs, policy shifts, and a weaker dollar, German Economic Institute data shows.
- The German Economic Institute reported a near-halving of outward investment to the U.S., around 10.2 billion euros , a fall of nearly 45% from the prior year.
- After beginning his second term on January 20 last year, President Donald Trump repeatedly threatened and imposed higher tariffs on EU goods, which IW said raised U.S. input costs and kept inflation above 2 percent.
- IW found exports to the U.S. weakened, with shipments down 8.6%, autos fell nearly 19%, machinery about 10%, chemical products over 10%, and November exports down 22.9%.
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Germany's exports to the United States fell by 9.4 percent in 2025, while imports rose. Trade surplus declined and the automotive industry is severely affected. China overtakes the United States as the most important trading partner.
Trump's customs policy affects Germany's export economy. Export figures show this. An industry is particularly affected.
Germany's export surplus in trade with the USA has fallen to the lowest level since the pandemic year 2021. Germany's car and mechanical engineering companies are particularly hard hit.
Federal Statistical Office [Newsroom]WIESBADEN (ots) - - German imports from the USA increased by 2.2% in the same period - Export surplus in trade with the USA to the lowest level since 2021 - Despite significant declines: Motor vehicles remain the most important export goods As a result of the ... Continue reading here...Original content of: Statistisches Bundesamt, news transmitted by currently
German Companies Pull Back From the U.S. as Tariffs and Uncertainty Rise
Key Points German investment into the U.S. fell about 45% in February–November 2025, based on Bundesbank-linked estimates. German exports to the U.S. dropped 8.6% in February–October 2025, with autos, machinery, and chemicals hit hardest. The slowdown matters because the U.S. is Germany’s top export market and its largest destination for German FDI. German firms sharply […]
German investment in US falls nearly 45% in first year of Trump’s second term: Report
German investment in the United States dropped sharply in the first year of President Donald Trump’s second term, as companies grew cautious amid rising trade uncertainty. A report by the German Economic Institute shows both investment flows and exports weakening.
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