1 month ago
German companies cut US investment to three-year low amid uncertainty
German companies are companies that live in Germany, a country in Europe.
Many of them build factories and buy businesses in the United States, which is another country.
Recently, German companies spent much less money in the United States.
In the first half of 2026, they spent about €4.3 billion, which is a lot less than before.
This is the smallest amount like this since 2023.
Why did they spend less?
The leader of the United States, Donald Trump, wants to charge extra taxes on things other countries sell to the US.
These extra taxes are called tariffs.
Because of that, German companies are not sure what will happen, so they wait before spending new money.
They still use the money they already earn in the US to grow their businesses there.
So the US is still an attractive place, but companies are being careful about new investments.
German companies cut their direct investment in the United States to €4.3 billion ($5 billion) in the first half of 2026, the lowest level since 2023.
First-half investment plunged by nearly two-thirds year-on-year and by almost 80% compared with the same period in 2024.
IW researcher Samina Sultan said the downward trend has been evident since Donald Trump's second term began in January 2025.
Trump has threatened most US trading partners with import tariffs, and the EU agreed a deal including a $600 billion investment pledge to avoid heavy duties.
German companies are reinvesting US-earned profits, suggesting the US remains attractive, but they are hesitant to commit new equity capital.
- Who
- German companies investing in the United States, Donald Trump's administration, the European Union, and the German Economic Institute (IW).
- What
- German companies cut first-half direct investment in the United States to a three-year low of €4.3 billion ($5 billion).
- Where
- German investment in the United States within transatlantic trade relations.
- When
- First half of 2026, continuing a downward trend since Donald Trump's second term began in January 2025; reported August 16, 2026.
- Why
- Uncertainty driven by Trump administration tariff threats against US trading partners.
Key facts
- H1 2026 investment
- €4.3 billion ($5 billion)
- Year-on-year change
- Down nearly two-thirds
- Change vs H1 2024
- Down nearly 80%
- Last lower level
- 2023
- Pre-pandemic H1 average
- €15.8 billion
- EU investment pledge
- $600 billion
- Data source
- German Economic Institute (IW) calculations based on Germany's central bank data
- Report date
- August 16, 2026
Quotes
Samina Sultan
Researcher at the German Economic Institute (IW)
“Companies that are already active in the United States are therefore continuing to reinvest the profits they earn there in the country. This suggests that the U.S. remains an attractive market overall.”
thehindubusinessline.com
“This continues the downward trend that has been evident since the start of Donald Trump's second term in January 2025.”
thehindubusinessline.com









