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German companies cut US investment to three-year low amid uncertainty

German companies cut US investment to three-year low amid uncertainty
German companies cut US investment to three-year low: Data · thehindubusinessline.com

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.

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

Sources

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