German companies cut US investment to three-year low, data show
German firms cut first-half direct investment in the United States to €4.3 billion, nearly 80% below 2024, as tariff threats deterred new capital.
- German companies slashed investments in the United States to a three-year low in the first half of 2026, as policies under President Donald Trump fed uncertainty between the transatlantic trading partners.
- Since the start of Trump's second term in January 2025, the downward trend has been evident, with German Economic Institute researcher Samina Sultan telling Reuters Trump has threatened most international trading partners with import tariffs.
- First-Half direct investments plunged by nearly two-thirds to €4.3 billion , representing a nearly 80% drop from 2024 and far below the pre-pandemic average of €15.8 billion.
- Firms already active in the United States continue to reinvest profits, Sultan said, though they remain hesitant to commit new capital amid policy uncertainty.
- To avoid heavy duties on exports to the United States, the European Union agreed to a $600 billion investment pledge last year, providing contrast to current capital hesitation.
22 Articles
22 Articles
Kreiszeitung
German companies invest significantly less in the USA. According to the IW, the investments fell by 65 percent in the first half of 2026.
German companies cut US investment to three-year low, data show
German companies slashed investments in the United States to a three-year low in the first half of 2026, as Trump administration policies fed uncertainty between the transatlantic trading partners.
US President Trump's conflicting trade policy worsens the conditions for companies. German companies have been holding back in America since he took up second office.
Welt
The investment boom of German companies in the USA has largely come to a halt. Despite the still attractive market, companies are conspicuously holding back on new engagements.
German companies reduce their direct investment in the US by 65 percent in 2025 compared to the previous year. Despite the decline, the US remains attractive as a market, as profits are reinvested locally.
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