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U.S. FDI Plummets Amid Tariff Uncertainty, Deficit Soars

6/26/2025

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Summary

Story summary

U.S. foreign direct investment (FDI) dropped to $52.8 billion in 1Q25, the lowest since 4Q22.
The current account deficit increased by 44.3% quarter-over-quarter, reaching $450.2 billion.
Economists attribute the FDI decline to uncertainty surrounding President Trump's tariff plans.
Future investments from Hyundai and Nippon Steel could positively impact FDI levels.

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Story summary

U.S. foreign direct investment (FDI) dropped to $52.8 billion in 1Q25, the lowest since 4Q22.
The current account deficit increased by 44.3% quarter-over-quarter, reaching $450.2 billion.
Economists attribute the FDI decline to uncertainty surrounding President Trump's tariff plans.
Future investments from Hyundai and Nippon Steel could positively impact FDI levels.