German companies’ investments in the U.S. have fallen significantly, reaching a three-year low in the first half of 2026, amid uncertainties surrounding Trump administration policies. Key highlights include:
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Investment Decline: Direct investments dropped nearly two-thirds year-over-year to €4.3 billion (approximately $5 billion), marking the lowest level since 2023. This is nearly an 80% decrease compared to the same period in 2024.
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Historical Context: Pre-pandemic (2015-2019), German U.S. investments averaged €15.8 billion in the first half of each year, nearly four times the current level.
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Contributing Factors: The drop is attributed to ongoing uncertainties linked to Trump’s second term, including threats of tariffs to U.S. trading partners, which have raised concerns among investors.
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Reinvestment Trends: Despite the low new investments, existing German firms in the U.S. are reinvesting their earnings, indicating that the U.S. remains an attractive market. However, hesitance to commit new capital persists.
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Composition of Investments: The study noted high levels of direct-investment loans and reinvested earnings, but equity capital from new investments remained below average.
Overall, while U.S. market attractiveness persists for established companies, challenges and uncertainties are discouraging new investments from Germany.
