The SelectUSA Investment Summit was held from May 11 through May 14. This year’s was the biggest ever of the United States’ biggest foreign direct investment (FDI) shindig. This year, the summit was the largest yet, bringing domestic and foreign delegations together to learn about new investment opportunities across the U.S. Many participants expressed concerns about unresolved proposed tariffs, which are complicating their planning efforts.
Beyond the summit, many other major investments were announced. Oklahoma Governor Kevin Stitt announcing a $300 million expansion of CBC Global Ammunition in his home state. Further, Waaree Energies announced a $200 million expansion of its U.S. subsidiary that will produce battery energy storage. These developments highlight the opportunities that exist to expand in almost every sector, even given the dark cloud of tariffs that loom over us all.
Barry Broome, president and CEO of the Greater Sacramento Economic Council, highlighted California’s importance as a key international market. He continued, the state’s broad economic environment welcomes investments from across the globe. The uncertainty caused by tariffs has made it difficult for both U.S. and foreign companies to make clear decisions about investments.
Ed Brzytwa, vice president for international trade at the Consumer Technology Association, highlighted the need for “predictability and certainty” in the trading environment. In fact, he continued, companies are scrambling to make investments in the United States. They require certainty regarding future trading conditions in order to proceed with confidence.
“There is a great desire by companies to invest in the United States, but in order to do that, they need predictability and certainty on what the trading environment looks like – not just today, but in the future, both short term, mid-term and long term.” – Ed Brzytwa
The effect of tariffs on corporate decision-making emerged as a key theme throughout the summit. In fact, all of the non-U.S. company representatives who testified said that they are putting off large investment decisions because of tariff uncertainty. Brzytwa and others caution that enforce tariffs sends a bad signal to businesses looking to invest in the U.S. This reluctance to invest puts our long-term economic growth at risk.
Even Oklahoma Governor Kevin Stitt complained that tariffs have a negative effect on investment, overall. More than anyone else, he highlighted how “the tariffs are hurting all of us.” He further noted a troubling 26% decrease in investment activity this year vs. last year. This decrease is indicative of larger trends impacting all of our markets, both here in the US and abroad.
The summit brought to light an accomplishment gap within that booming business activity. Shockingly, 60% of this business is from domestic markets, with 40% from international markets. This statistic paints a picture of an active U.S. investor base, but one where foreign investors are showing higher levels of caution because of uncertainties caused by tariffs.
Yvonne Bendinger-Rothschild encapsulated this sentiment by stating, “The problem is more the uncertainty than the tariff itself. I mean, a tariff is a tax, and nobody likes to have a tax all of a sudden put onto them or onto their trade.”
