German Businesses Invest Less in the US under Trump Administration, Data Suggests
According to a new analysis by the German Institute for Economic Affairs (IW), German companies have invested significantly less in the United States since the inauguration of Donald Trump. In February and March, a total of 265 million euros was invested, a stark contrast to the average of 4.6 billion euros per year from 2010 to 2024. This trend could be an early indication that the unpredictable US economic policies are deterring investors.
Although the first year of a US presidency is often marked by some degree of economic uncertainty, the current low level of German direct investments in the US has not been seen since 1993, when Bill Clinton first took office. IW’s external trade expert, Samina Sultan, advises caution when interpreting the latest figures, as monthly values can fluctuate greatly and are often subject to revisions and special effects.
However, in the long term, the trend appears to be pointing towards a decrease in German investments in the US, with Sultan stating, “Who decides to invest large sums needs reliability and planability. At the moment, these are not given in the US.