German companies reduced direct investment in the United States to the lowest level in three years during the first half of 2026, according to data from the German Economic Institute.

The decline marks a year‑on‑year drop of nearly 80%, falling from €21.5 billion in the same period of 2024 to €4.3 billion this year, the institute said. The first‑half investment total is significantly below the average of €15.8 billion recorded in the five years before the COVID‑19 pandemic.

The German Economic Institute calculated the figures using data from Germany’s central bank. Since taking office in January 2025, the Trump administration has threatened import tariffs on several trading partners, creating uncertainty for German firms. Companies that already operate in the United States are reinvesting earnings, but new capital commitments have remained limited, the institute noted. The composition of investment flows showed higher levels of direct‑investment loans and reinvested earnings, while equity capital remained below average.

Analysts said the trend may persist if trade policy uncertainty continues, though the United States remains an attractive market overall.