Tariffs affecting US investment decisions by foreign companies

From Yahoo Finance: 2025-05-15 08:58:00

Foreign companies are delaying major investments in the US due to uncertainty caused by Trump’s tariffs. The SelectUSA Investment Summit attendees express concerns over planning amid unresolved tariff levels. Tariffs create unpredictability, affecting businesses’ ability to invest in the US long-term, leading to potential negative impacts on the economy.

Delegates at the Summit note a desire to invest in the US but require certainty in the trading environment. Tariffs create ambiguity, leaving companies unsure how to position themselves for success. Imposing tariffs may discourage businesses from investing in the US, potentially raising costs for importing goods needed for manufacturing.

Despite major investments announced during the Summit, attendees acknowledge that tariffs are hindering foreign investment in the US. Aviation companies in Oklahoma and agricultural producers are feeling the effects. Uncertainty leads to a decrease in business activity and the postponement of complex projects, impacting the economy.

California’s Greater Sacramento Economic Council reports a 26% decrease in business activity from international markets due to tariff uncertainty. The shifting tariff landscape is causing companies to hesitate on investments. Uncertainty leads to hesitancy in both international and domestic business activities, affecting economic growth.

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