German companies reduced their direct investment in the United States to the lowest level in three years, according to data highlighted by Investing.com. The decline reflects a broader pullback that began in early 2025 and accelerated through the year, driven by trade policy volatility and currency shifts.
The German Economic Institute (IW) reported that German firms invested roughly €10.2 billion ($11.1 billion) in the U.S. from February through November 2025, a drop of about 45% compared with the same period a year earlier. Over the same span, German exports to the U.S. fell 8.6%, the steepest decline since 2010. IW cited U.S. tariffs and dollar depreciation as key factors behind the contraction.
Survey data reinforce the trend. Nearly 30% of German companies said they had postponed U.S. investment plans, according to a Reuters survey from July 2025. A separate KPMG poll of German firms with U.S. operations found that 69% identified unpredictability of U.S. policy as their top challenge, while 49% pointed to U.S. tariffs and 37% to potential tax increases targeting foreign companies. About 19% of respondents said they were considering withdrawing from the U.S. market, roughly matching the 21% planning new production facilities there.