German Investment in US Hits Three-Year Low Amid Trump Policies

German companies reduced their investments in the United States to a three-year low during the first half of 2026, according to the German Economic Institute. The decline is attributed to uncertainty stemming from the Trump administration’s trade policies. Despite overall market attractiveness, new capital commitments remain sluggish.

German companies have curtailed their investments in the United States to a three-year low, with figures dropping sharply in the first half of 2026. This downturn is attributed to trade policies enacted by the Trump administration, which have introduced a level of uncertainty between transatlantic trade partners.

According to calculations by the German Economic Institute (IW) seen by Reuters, the first-half direct investments decreased by nearly two-thirds year-on-year, reaching €4.3 billion ($5 billion), marking the lowest level since 2023. Compared to the same period in 2024, this is a near 80% drop, the report, based on data from Germany's central bank, stated.

However, despite this decrease in new investments, companies already operating in the U.S. continue to reinvest their profits there, indicating that the U.S. remains an attractive market despite current uncertainties. Nevertheless, there is a marked hesitance in committing new capital to U.S. ventures.