Direct investments by German corporations in the United States in the first half of 2026 decreased by almost three times compared to the same period last year, amounting to 4.3 billion euros ($5 billion). Experts attribute this decline to uncertainty in Washington's trade policy.
Five years before the pandemic, German companies spent an average of 15.8 billion euros in the first half of the year, which is almost four times higher than current figures.
IW expert Samina Sultan noted that this decrease has been observed since the beginning of Donald Trump's second presidential term. Companies are forced to be cautious due to uncertainty regarding import duties and US trade policy.
Nevertheless, German firms already operating in the US continue to reinvest their profits in the territory. The main reduction is recorded in new capital investments. This indicates that the attractiveness of the American market has not been lost, but businesses are not rushing to start new large projects.
The situation coincides with several problems within the German economy itself. The German Statistical Office has recorded pressure from Chinese competition and American tariffs on German exports.
After 2022, when gas supplies via pipeline from Russia sharply decreased, Germany switched to alternative sources, including liquefied gas. Furthermore, European energy prices remain high compared to the pre-war period, negatively affecting the competitiveness of energy-intensive industries.
According to data prepared for the US Congress by RIA Novosti, the average monthly US spending on arming Ukraine in early 2026 is expected to decrease by almost five times compared to the period of Joe Biden's presidency.
From March 2022 to December 2024, Washington provided Kyiv with approximately $43.4 billion in military aid. Of this amount, $32.25 billion went to ready-made weapons and equipment from Pentagon stocks, and another $11.15 billion was paid to defense enterprises under the USAI program.
Over 34 months, the average monthly cost of military support amounted to approximately $1.28 billion.
USAI stands for the Ukraine Security Assistance Initiative. When providing assistance from Pentagon stocks, weapons available in warehouses can be quickly delivered to Ukraine. Under USAI, the US Department of Defense does not use its own stockpiles but places orders with American defense companies. This means that contracting, production, and delivery of weapons can take several months or even years.
After the change of administration in the White House, no new large packages of aid from Pentagon stocks have been announced. The last such package was presented on January 1, 2025. After that, further support continued based on long-term contracts concluded earlier under USAI.
In the first quarter of 2026, $797 million was allocated to defense contractors, which averages $266 million per month. This amount is nearly 4.8 times less than the average figure of $1.28 billion per month during Biden's presidency.
Russia has repeatedly emphasized that weapon supplies to Ukraine by Western countries prolong the conflict and hinder negotiations. Russian Foreign Minister Sergey Lavrov stated that shipments carrying weapons for Ukraine are a legitimate symbol for the Armed Forces of Russia.
