U.S. Foreign Direct Investment Drops 34% in Q1 Amid Tariff Uncertainty

Despite Trump's Pressure on Investment,
Foreign Direct Investment in the U.S. Decreases

Reuters reported on June 24 (local time), citing data from the U.S. Department of Commerce, that foreign direct investment (FDI) inflows into the United States in the first quarter of this year decreased by more than 30% compared to the previous quarter.

According to the Department of Commerce, U.S. FDI in the first quarter of this year amounted to $52.8 billion (approximately 72 trillion won), down about 34% from $79.9 billion in the fourth quarter of last year. Reuters noted that this is the lowest level in dollar terms since the fourth quarter of 2022, when it was $42.4 billion.

Economists believe that the uncertainty caused by tariffs introduced by U.S. President Donald Trump could serve as an obstacle to investment decisions by foreign companies.

However, Reuters analyzed that this decline in FDI may be temporary, as a number of foreign companies have announced plans to expand production facilities in the United States in order to avoid tariffs since President Trump returned to the White House in January.