Foreign Investment and Workforce Trends in 2025
As the U.S. tightens its economic stance under the Trump administration, foreign investment and workforce dynamics are evolving. The government’s policies favoring allied investments while restricting those from strategic competitors are reshaping global business decisions.
In this article, we analyze the impact on foreign direct investment, employment, and the growing trend of American expatriation, foreign investment and workforce dynamics are evolving. The government’s policies favoring allied investments while restricting those from strategic competitors are reshaping global business decisions.
Also, we analyze the impact on foreign direct investment, employment, and the growing trend of American expatriation.
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"America First" Investment Policy
In February 2025, the White House issued an America First Investment Policy, favoring investments from allies while restricting those from adversaries like China, Russia, and Iran (Daya et al., 2025). This includes a fast-track approval process for investments from friendly nations while increasing scrutiny on Chinese and other restricted investments.
Foreign Direct Investment Trends
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While FDI from Europe, Japan, and South Korea is rising, Chinese investments in the U.S. have declined sharply. Trump has also encouraged foreign automakers to shift production to the U.S. to avoid tariffs, increasing job creation in manufacturing hubs.
Employment and Economic Impact
Positive: New tax policies and reshoring efforts are boosting manufacturing job opportunities.
Negative: Labor shortages in key industries, including agriculture and tech, could worsen as immigration policies tighten.
Uncertain: Trade disputes and tariffs may increase costs for businesses and consumers (Reid & Slattery, 2024).
Expatriate Trends (Americans Abroad vs. Returning)
Americans Living Abroad – Growing Numbers & Key Destinations
As of 2025, over 9 million Americans are residing abroad, with Mexico (799,000), Canada (273,000), and the U.K. (171,000) among the top destinations (Rader, 2025). Lower living costs, business opportunities, and lifestyle preferences continue to attract U.S. expatriates.
Table 1: American Expatriate Growth by Country (2020-2025)
This trend suggests a growing global mobility mindset, influenced by remote work flexibility and international business opportunities (Outbound Investment Group, 2024).
Post-Election Expat Boom
The 2025 U.S. presidential election has reignited debates on migration, with more Americans exploring second citizenships and foreign residencies. While these shifts are not yet clearly reflected in our moving data, immigration firms report a surge in inquiries following Donald Trump’s re-election, as individuals seek stability, economic opportunities, and alternative legal protections abroad (HLG, 2025). Given the trends emerging since the start of the year, we anticipate growth in certain popular expat destinations in the coming months. This pattern is not new, but the current political climate has intensified the drive for expatriation.
Why Are Some Americans Looking to Leave?
The motivations for seeking residency or citizenship abroad vary widely. Some expatriates are drawn by the economic benefits, such as lower taxes and cost of living, while others prioritize political stability, healthcare access, or personal freedoms.
One of the most attractive destinations is Portugal, which has seen a 500% increase in American residents over the past decade (Outbound Investment Group, 2024). The country’s Golden Visa program and Digital Nomad Visa have made it easier for U.S. citizens to establish residency while enjoying a high quality of life. Similarly, countries such as Spain, Mexico, and Canada have reported growing numbers of American migrants, particularly those looking to retire or work remotely in more favorable economic conditions.
Are Americans Coming Back?
Return migration to the U.S. remains low. While Trump has proposed eliminating double taxation on Americans abroad, a policy change that could slow expatriations, most expatriates are in "wait and see" mode regarding U.S. political and economic developments (Baker McKenzie InsightPlus).
Net Migration Effect
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The U.S. has historically had higher immigration than emigration, but this gap is narrowing. With immigration restrictions increasing and voluntary emigration growing, the net inflow of people to the U.S. is expected to decline in 2025. Deportations have reached a decade-high, further reducing the immigrant population (Bueno & Müller, 2025).
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Summary
Under Trump’s second-term policies, foreign investment and workforce mobility are experiencing significant shifts. The U.S. is welcoming investments from allied nations while imposing restrictions on adversarial capital. Expatriation trends continue to grow as more Americans move abroad for economic and lifestyle reasons, while return migration remains low. These trends underscore the dynamic global movement of businesses and talent, influenced by evolving economic and regulatory policies.
Sources
Rader, J. (n.d.). Statistics about Americans abroad. 2025: SavvyNomad.
Outbound Investment Group. (2024). American Expat: Why Millions of Americans Are Moving Abroad (& Where They’re Going). Outbound Investment Group.
HLG. (2025). Top Reasons Why More Americans Are Leaving the US in 2025. HLG.
Baker McKenzie InsightPlus. (n.d.). United States: Anticipating Donald Trump's tax proposals and initiatives during his second term. Baker McKenzie InsightPlus.
Daya, C., Klein, N., Le, V., Asancheyev, N., Young, P., Larson, M., & Thompson, A. (2025). Trump Administration issues America First Investment Policy memorandum. DLA Piper.
Reid, T., & Slattery, G. (2024, September 2025). Trump pledges to take jobs and factories from allies, China. Reuters.
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