Berlin, Aug. 16 (SANA) German companies’ direct investment in the United States fell to $5 billion in the first half of 2026, its lowest level in three years, according to a researcher at the German Economic Institute.
“This downward trend has been ongoing since the second half of 2025, with German investment in the United States falling by nearly two-thirds year-on-year and 80% compared with the same period in 2024,” researcher Samina Sultan told Reuters.
Tariff uncertainty weighs on investment
Sultan attributed the decline partly to tariff policies imposed by the Trump administration on imports from US trading partners, which have prompted German companies to reassess long-term investment decisions.
In an attempt to mitigate the impact of potential tariffs, the European Union reached an agreement with Washington last year that included commitments for $600 billion in European investment in the United States, aimed at protecting European exports from broader tariff increases.
Historical comparison
German investment in the United States averaged 15.8 billion euros during the first half of the five years preceding the COVID-19 pandemic, roughly four times the level recorded in the first half of 2026.
The German Economic Institute noted, however, that the 2020-2023 period was affected by exceptional circumstances related to the pandemic and net investment outflows.
In July, German Economy Minister Katharina Reiche warned that Trump’s threat to impose 30% tariffs on EU imports would harm both Europe and the United States and significantly affect their economies and consumers.
The German Economic Institute has previously warned that US tariffs could create uncertainty, reduce planning certainty and further weaken investment by German companies.
Kh.A / Mzn
