BERLIN — Direct investment by German companies in the United States fell to €4.3 billion, approximately US$5 billion, during the first half of 2026, according to calculations by the German Economic Institute.
The figure represents a decline of nearly two-thirds from the corresponding period of 2025 and is the lowest first-half total since 2023. Compared with the first six months of 2024, the reduction was close to 80%.
In the five years before the COVID-19 pandemic, German companies invested an average of €15.8 billion in the United States during the first half of each year—almost four times the 2026 amount.
Researchers said existing German businesses continue to reinvest profits earned in America, suggesting that the U.S. remains an important market. However, companies appear hesitant to commit new capital because of uncertainty surrounding tariffs and trade policy.
Why it matters: The decline indicates that continuing trade uncertainty may be discouraging new transatlantic investment despite broader commitments to deepen economic relations.
