German companies cut US investment to three-year low, data show

German companies pulled back sharply from investing in the United States during the first half of 2026, with direct investment reaching its lowest point in three years. Business Recorder, citing Reuters, reported that the total dropped to €4.3 billion ($5 billion), down by nearly two-thirds compared with a year earlier. The figures come from calculations by the German Economic Institute, known as IW, which drew on data from Germany's central bank.

Measured against the same period in 2024, the decline is nearly 80%, according to the same report. IW researcher Samina Sultan linked the trend to uncertainty from Trump's trade policies, saying it has continued since January 2025. Trump has threatened tariffs against most of Washington's trading partners, and the EU agreed a deal last year, including a $600 billion investment pledge, to limit duties on its exports.

Before the COVID-19 pandemic, German first-half investment in the US averaged €15.8 billion over five years, almost four times the 2026 level. Sultan cautioned that the 2020 to 2023 period was distorted by the pandemic, with some years showing net outflows. Loans and reinvested earnings were unusually high in 2025, while new equity stayed below average, and Sultan said firms already active in the US keep plowing profits back, a sign the market remains appealing.