As reported by CCTV News, U.S. website Politico published an article on July 18, titled "In states, tariffs aren't yet producing the surge of foreign investment Trump is promising," highlighting that economic uncertainty triggered by U.S. tariff policies has slowed foreign investment into the country, contrary to the Trump administration's claims that tariffs would attract "trillions in foreign capital."
The article noted that while the current U.S. administration is eager to showcase signs of economic growth, even applauding companies for merely "considering" expanding U.S. production capacity, such rhetoric may obscure economic realities. Many of the corporate investment plans touted by the government were either years in the making, exaggerated, or subject to future changes. Data reveals that despite recent announcements by automakers about relocating production to the U.S., employment in the American auto manufacturing sector has declined by over 20% compared to 2024 levels.
Economic Uncertainty Deters Foreign Investors
Officials from multiple states reported that instead of a foreign investment boom, tariff-driven uncertainty is discouraging international businesses from entering the U.S. market. A Michigan official stated that while foreign companies are still exploring investments in the state, decision-making has slowed amid lingering doubts. Similarly, a Wisconsin official emphasized that businesses require high certainty to invest, and many planned projects have now been shelved.
Global Investment in U.S. "Cooling Off"
Bruno Bonnell, Secretary-General of the French Treasury's Directorate-General for Investment, recently warned that the unpredictability of U.S. tariff policies will ultimately dampen global investment in the country. He criticized the administration's erratic decision-making, stressing that uncertainty is pressuring businesses and causing French investment in the U.S. to "cool significantly."
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