German companies love America. According to the German-American Chamber of Commerce, around 5,600 of them have invested in the US market. As of September 2022, that’s an investment volume of almost $650 billion (€605 billion). And it’s not only big firms like Siemens, Volkswagen or Linde that are currently looking to strengthen their commitment to the United States — in some instances, even building entire new production facilities.
“There are various reasons for it,” says Dirk Dohse, who heads the Innovation and International Competition Research Center at the Kiel Institute for the World Economy (IfW). “One is the increase in geopolitical tensions. Many German companies see the US as a ‘safe harbor.’ Other reasons are the comparatively low energy costs and the very generous subsidies provided under the Inflation Reduction Act.”
