German companies slash US investments
Firms slashed investments to a three-year low to limit exposure to Washington’s uncertain trade policies.
German companies have reduced their investments in the United States to a three-year low in the first half of 2026, according to a report by Reuters. This trend is attributed to firms' efforts to limit their exposure to the uncertain trade policies under the Trump administration, which often used trade flows as a tool of leverage.
Spain's decision to cancel an order for Lockheed Martin F-35 jets last year, due to disagreements over defense spending, is a notable example of how trade disputes can impact cross-border investments. While US firms do not represent a significant portion of European investment, they are concentrated in critical sectors like IT and defense, where switching to alternative suppliers can be costly and complicated.
Together, these factors have contributed to a cautious approach by German companies in their US investment strategies.
Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
