German companies are withdrawing from the USA: alarm mood!

German companies are withdrawing from the USA: alarm mood!

The current economic relations between German companies and the USA are showing a worrying development. According to a new study published by the FAZ, German companies are currently investing less in the USA than at any time since 1993. Although US President Donald Trump aims to promote investment in his country, the reality is different.

The mood among German companies in the USA has deteriorated significantly. An evaluation by the German Chamber of Commerce and Industry (DIHK) shows that only 14 percent of the companies surveyed expect the economy to improve in the next twelve months. In autumn 2024, this value was still 38 percent. The uncertainty about future economic developments contributes significantly to this pessimistic attitude.

Unfavorable customs policy

The main reason for this deterioration in sentiment is President Trump's tariff policy. Many companies report disadvantages that arise from preferring local providers. This proportion has risen from 21 percent last year to an alarming 71 percent. According to DIHK foreign trade chief Volker Treier, US trade policy was classified as unpredictable, which promotes fears and inhibitions when it comes to investments.

The new tariffs and counter-tariffs are not only putting a strain on trust, but also on the competitiveness of both sides of the Atlantic. Since March 2025, significant announcements of new tariffs on steel, aluminum, cars and EU imports have been made, with tariffs on steel and aluminum increased to 50 percent.

Growing investment fears

The current survey shows that only 24 percent of German companies plan to expand their investments in the USA. In autumn 2024, this percentage was still 37. Companies are also increasingly showing a tendency to reduce their investments. The proportion of those who intend to do so has increased from 18 percent to 29 percent.

The challenges for German companies in the USA are noticeable. 41 percent of companies report disrupted supply chains, a huge increase compared to just 16 percent in autumn 2024. The voices of companies leave no doubt that volatile trade policy and the associated economic risks represent a significant hurdle.

Overall, it can be said that uncertainty among German investors is growing and requires them to adapt their strategies. The economic environment could continue to deteriorate without a fundamental change in trade policy, which will be particularly challenging for German companies that already operate in the USA.

The FAZ provides further information on the investment conditions for German companies in the USA more details and the Tagesschau a comprehensive analysis.