German companies cut US investment to three-year low

Business Recorder, citing Reuters, reported that direct investment by German firms in America hit a three-year low over the opening six months of 2026. The German Economic Institute (IW) worked out first-half investment at €4.3 billion ($5 billion), a fall of nearly two-thirds from a year earlier. That is the weakest level since 2023, with the numbers drawn from Germany's central bank statistics.

The IW report compares the period with the same half of 2024 and shows a decline of nearly 80%. IW researcher Samina Sultan said this continues a downward trend visible since Donald Trump began his second term in January 2025. Trump has used threats of import tariffs against most of Washington's trade partners since returning to power, and the European Union, seeking to avoid heavy duties on exports, reached a trade accord last year containing a $600 billion investment commitment.

Sultan added that the 2020 to 2023 stretch was shaped by an unusual pandemic setting, and that first-half investments averaged €15.8 billion in the five years before COVID-19, almost four times the 2026 figure. Flows over 2025 showed direct-investment loans and reinvested earnings at exceptionally high levels, while new equity capital stayed below average. She said firms already active in the US keep reinvesting profits there, which suggests the market remains attractive, but companies have been hesitant to commit fresh capital.