Archive · 20 Jan 2026
German Investment in US Drops 45% in 2025
German companies invested much less money in the United States in 2025 compared to the previous year.
They spent about 10.2 billion euros, which is nearly 45% less than the 19 billion euros they invested in the same period in 2024.
This drop is because of uncertainty in trade policies and higher tariffs imposed by US President Donald Trump.
Additionally, German exports to the US also decreased by 8.6%, with the biggest drops in car parts, machinery, and chemicals.
The uncertainty has made companies cautious about making long-term investment decisions.
European investors, who own significant US assets, may also reduce their exposure due to tensions, potentially weakening the dollar and increasing financing costs for the US.
German investment in the US fell by 45% in the first year of Trump's second term, from 19 billion euros to 10.2 billion euros.
Exports from Germany to the US declined by 8.6%, the steepest drop since 2010 outside the COVID-19 years.
The decline was driven by trade uncertainty and US tariffs, as well as the depreciation of the dollar.
Sectors most affected include automobiles, machinery, and chemicals, with declines of 19%, 10%, and over 10% respectively.
Companies are adopting a wait-and-see approach due to frequent shifts in US trade policy.
- Who
- German companies and European investors
- What
- Decrease in investment and exports to the US, potential pullback of European capital from US assets
- When
- February to November 2025
- Where
- United States
- Why
- Rising trade uncertainty, US tariffs, and geopolitical tensions
European Investors
US Economy
Investment Pullback
European Investors
European investors may reduce exposure to US assets due to trade tensions, potentially weakening the dollar and increasing financing costs.
US Economy
The US economy relies on European capital for growth and financing, with a pullback potentially impacting stock valuations and borrowing costs.
- Investment Period
- February to November 2025
- Investment Amount (2025)
- 10.2 billion euros
- Investment Amount (2024)
- 19 billion euros
- Percentage Decrease
- 45%
- Long-term Average (2015-2024)
- 13.4 billion euros
- Export Decline (2025)
- 8.6%
- Hardest Hit Sectors
- Automobiles, Machinery, Chemicals
- US-EU Trade (2024)
- $1.5 trillion (US data) or €1.68 trillion (EU data)
- European Ownership of US Assets
- Factories, subsidiaries, logistics networks, corporate operations, and $8 trillion in US bonds and equities
