Key insights
- A DIHK survey reveals a decline in German companies planning to invest in the US due to trade tariffs, with a shift towards China and Asia-Pacific. This indicates potential weakening of foreign direct investment into the US, which could negatively impact US economic growth and, indirectly, equity market performance. The shift reflects concerns about trade policy uncertainty.
Investing.com -- Fewer German companies plan to invest in the United States as trade tariffs under President Donald Trump prompt a shift toward China and other Asian markets, according to a survey by industry lobby group DIHK released Thursday.
The survey of around 1,700 manufacturers found that 44% planned to invest in the US, down four percentage points from the 2025 survey. This marks the first significant decline since the Covid-19 pandemic, DIHK said.
China was a declared investment target for 34% of respondents, up from 31%, while the figure for the entire Asia-Pacific region jumped by five percentage points to 26%.
Volker Treier, DIHK’s head of foreign trade, said the trade dispute with the US is fueling uncertainty and leading companies to postpone decisions. In Asia, firms are increasingly moving to both produce and sell their products in local markets, particularly in China and India, he said.
The euro area remained the most important region for German foreign investment by some distance. Its stability, the common internal market, and the common currency offer reliable framework conditions, according to the DIHK report.
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