German Investment in US Hits Three-Year Low

German companies reduced direct investments in the United States to a three-year low during the first half of 2026, totaling 4.3 billion euros. According to calculations by the Institute of the German Economy based on central bank data, this figure represents a nearly two-thirds plunge year-on-year and an 80 percent drop compared to the same period in 2024.

The decline is attributed to economic uncertainty stemming from the policies of the second administration of Donald Trump. Specifically, threats of import tariffs used to secure concessions for Washington have caused companies to hesitate when committing new equity capital.

Despite the drop in new commitments, the Institute of the German Economy notes that companies already operating within the United States continue to reinvest their profits. This suggests that while new entries are stalled, the American market remains attractive to established German firms. In a broader effort to avoid heavy export duties, the European Union has pledged a 600 billion dollar investment.