German companies' investments in America fall to their lowest level in 3 years

German companies have cut their direct investments in the United States to a three-year low, amid growing uncertainty over US President Donald Trump's trade policies.

According to data from the German Economic Institute (IW), based on figures from the German central bank, direct investments by German companies in the United States fell by about two-thirds year-on-year, to 4.3 billion euros, or about 5 billion dollars, the lowest level since 2023.

This figure represents a decrease of nearly 80% compared to the first half of 2024, reflecting a significant decline in the flow of new German capital into the US market.

Researcher Samina Sultan of the institute said the decline continues the downward trend that has emerged since the start of Trump's second term in January 2025, noting that US tariff policies have increased uncertainty between the United States and its trading partners.

Since returning to the White House, Trump has threatened to impose tariffs on numerous trading partners, aiming to force them to make trade concessions to Washington. In an effort to avoid high tariffs on its exports to the United States, the European Union concluded a trade agreement last year that included a pledge of $600 billion in investments.

The data reveals a widening gap compared to pre-pandemic levels, as the average investment of German companies in the United States during the first half of the year, in the five years prior to the pandemic, amounted to about 15.8 billion euros, nearly four times the 2026 level.