German Firms Slash US Investments by 65% Amid Negative Trend

German companies have drastically cut their direct investments in the United States, according to a study by the Institute of the German Economy (IW). In the first half of the year, investments plummeted to around 4.3 billion euros, a 65% drop from the same period last year. This marks a continuation of a negative trend that began when Donald Trump started his second term in January 2025.

The study, which analyzed Bundesbank data, highlights a significant shift in investment patterns. The decline suggests a growing hesitancy among German businesses to commit capital to the world's largest economy. The reasons behind this trend, particularly its onset during Trump's second term, point to potential policy or geopolitical concerns influencing corporate decisions.

While the article does not delve into the specific reasons for this downturn, the data indicates a clear pattern of reduced financial commitment. The IW's calculations provide a stark quantitative measure of this disinvestment, underscoring a notable change in the economic relationship between Germany and the U.S.