Foreign direct investment (FDI) in the US has fallen to 52.8 billion USD in Q1 2025, down from 79.9 billion USD in Q4 2024. This decline is mainly due to uncertainties surrounding President Trump’s tariff policies.
Despite the decline, multibillion-dollar projects from foreign companies, including Nippon Steel’s acquisition of US Steel for nearly 15 billion USD, may increase FDI in the coming quarters.
The US current account deficit surged to a record 450.2 billion USD, up from 138.2 billion USD, caused by businesses importing goods ahead of expected tariffs. Economists warn this could pose risks to the dollar and economic growth.
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