Foreign direct investment (FDI) into the U.S. fell sharply to $52.8 billion in Q1 2025, down from $79.9 billion in Q4 2024, amid growing uncertainty over President Donald Trump’s tariff policies, according to the Commerce Department. The decline contributed to a record U.S. current account deficit of $450.2 billion, as businesses rushed to import goods ahead of steep tariffs. Despite the drop, economists suggest the fall may be temporary, with upcoming large-scale investments—including Nippon Steel’s $14.9 billion acquisition of U.S. Steel and $21 billion in new U.S. manufacturing projects by Hyundai—expected to boost future FDI inflows.
