German Investment in US Hits Three-Year Low Amid Tariff Uncertainty

The figure, documented by the German Economic Institute (IW) using central bank data, represents the lowest level of investment since 2023 and an 80% drop compared to the same period in 2024. IW researcher Samina Sultan noted that this decline sustains a downward trajectory that emerged shortly after Donald Trump began his second term in January 2025. The current volume sits far below the pre-pandemic average of €15.8 billion, highlighting the depth of the retreat.

While new equity capital remains stagnant, the data reveals a nuanced picture of corporate strategy. Firms already established in the American market are opting to reinvest local profits rather than committing fresh capital from abroad. According to Sultan, this indicates that while the United States maintains its status as an attractive consumer market, the looming threat of import tariffs and trade concessions has paralyzed expansion plans. For now, German industry is prioritizing the protection of existing assets over the risks associated with new, large-scale financial exposure in the region.