German companies cut their US investments to a three-year low in the first half of 2026, Reuters reported, as firms limited their exposure to Washington’s uncertain trade policies.
US President Donald Trump has often sought to weaponize trade flows as a source of leverage, leading partners to seek alternate arrangements. Spain, for instance, canceled an order for Lockheed Martin F-35 jets last year amid disagreements with the US over defense spending.
US firms don’t account for a large overall share of European investment but are clustered in critical sectors, The Economist found: As much as two-fifths of the business that American companies generate from foreign governments is in IT and defense, sectors in which switching to new suppliers is costly and complicated.