Confirmed fact — German investment in the U.S. did fall sharply in 2025
According to a new report by the German Economic Institute (IW) based on Bundesbank data, German companies invested about €10.2 billion (~$11.1 billion) in the United States from February to November 2025 — roughly 45 % lower than the nearly €19 billion invested in the same period in 2024. That’s a near-halving of investment flows year-on-year, not just a small drop.
📉 Key reasons cited:
Trade policy uncertainty and shifting tariffs under the Trump administration unsettled long-term corporate planning.
Investing decisions that span many years tend to get postponed when economic policy is unpredictable.
Important nuance:
When compared with the long-term average for 2015–2024, 2025 investment was also down — but by a smaller margin (~24 %).
A decline like this doesn’t necessarily mean companies are leaving the U.S., but rather that new investment commitments slowed significantly.
🛠️ Context worth knowing (not in original claim):
Exports from Germany to the U.S. also weakened in 2025, falling about 8.6 % — the steepest drop outside the pandemic period — suggesting broader trade tensions.
⚠️ So on the specific claim:
✔️ The ~45 % drop in German investment flows to the U.S. in 2025 compared to 2024 is accurate according to multiple reliable news reports.
The ~45 % drop in German investment flows to the U.S. in 2025 compared to 2024 is accurate according to multiple reliable news reports.
❌ But this doesn’t in itself prove causation (e.g., solely due to Trump policy, business exits, or all sectors equally affected). Market movements, exchange rates, and sectoral shifts also play roles — and long-term investment trends are influenced by many factors.
