By Rene Wagner and Maria Martinez
BERLIN, Jan 19 (Reuters) – German companies pulled back on investment and exports to the U.S. during the first year of President Donald Trump’s second term, hit by trade uncertainty and higher tariffs, according to a report by the German Economic Institute (IW) seen by Reuters on Monday.
Over the period from February to November 2025, German firms invested around 10.2 billion euros ($11.1 billion) in the United States, down from almost 19 billion euros in the same period a year earlier, a decline of roughly 45%, the study showed, using data from the German Bundesbank.
Because direct investment flows often fluctuate strongly, IW also compared the figures with the average value for the reference period from 2015 to 2024, which was around 13.4 billion euros.
“Even relative to that, the figure since Trump took office is down by more than 24%,” said IW researcher Samina Sultan.
EXPORTS ALSO IN DECLINE
German exports to the U.S. also weakened, with shipments falling 8.6% between February and October 2025 compared with the same period a year earlier, IW said, the steepest drop since 2010 outside the COVID-19 period.
The report said companies were unsettled by shifting U.S. trade policy and threats of additional duties.
(Reporting by Rene Wagner and Maria MartinezEditing by Miranda Murray)
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