In a continued downward trend, expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses decreased by $24.9 billion, or 14.2 percent. At $151.0 billion, they were below the annual average of $277.2 billion for 2014–2023.

In a new release today by the U.S Department of Commerce, Bureau of Economic Analysis, expenditures by industry showed that new direct investment was largest in the manufacturing sector at $67.7 billion, which accounted for 44.9 percent of total expenditures.

Interestingly, the two countries that led the way in foreign investment were Ireland ($30.1 billion), followed by Canada ($23.9 billion).

This data comes just one day after Trump released a letter to Canada threatening 35% tariffs on all goods effective August 1, in what is another chaotic escalation in the Administration’s trade war with one of its most important trading partners.

In addition to being one of the most significant sources of investment into America, Canada is the top purchaser of US exported goods, importing $349 billion worth last year.

Since the start of Trump’s aggressive trade policies earlier this year, Canadian negative sentiment towards America – and the repercussions associated with such animosity – has already been impacting the United States.

Travel from Canadians visiting the U.S. has plummeted 58% year over year.

Canadians are the single largest group of foreign visitors to the U.S., bringing an estimated $20.5 billion into the United States in 2024, resulting in approximately 140,000 American jobs, particularly in the hospitality and related sectors. 

With dropping foreign investment and spending, the Administration foolishly continues to further alienate America from its closest allies with continued chaotic trade demands.

Ultimately, if the Administration continues down its current path, it is the American economy that will continue to feel the pain of ill-conceived and poorly implemented policies.