German investments in US fall to 3-year low
German companies' foreign direct investments in the United States decreased by nearly 80% during the first half of 2026, reaching around $5 billion, the lowest level in three years. This decline is due to increased uncertainty regarding the trade relations between the two countries. Although the U.S. market continues to be attractive to existing companies, German firms have become more cautious about injecting new capital and are particularly avoiding commitments to new investments amid trade tensions and policies imposed by U.S. President Trump, who has threatened to impose tariffs on imports. Consequently, companies are currently focusing on reinvesting profits, while new investments remain low compared to pre-pandemic levels, despite some firms still investing earnings in the U.S. market.
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