US first-quarter foreign direct investment falls sharply amid tariff uncertainty
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 24 2025
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Source: Reuters
Foreign Direct Investment Decline: Foreign direct investment (FDI) in the U.S. dropped significantly to $52.8 billion in Q1 2024, influenced by uncertainty surrounding President Trump's tariff policies, contributing to a record high current account deficit of $450.2 billion.
Future Outlook for FDI: Despite the decline, experts anticipate an increase in FDI in upcoming quarters as foreign manufacturing projects and acquisitions, such as Nippon Steel's acquisition of U.S. Steel, are expected to boost investment inflows.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
