US launches trade investigation into Germany over drug pricing
The United States has launched a formal trade investigation into Germany over its plans to reduce spending on pharmaceutical products, escalating economic tensions between the two allies. The probe will examine whether Germany’s policy is unfair or discriminatory toward US interests.
The investigation was announced by US Trade Representative Jamieson Greer under Section 301 of the Trade Act of 1974. He said the office will open a public comment process on June 25, followed by hearings scheduled for September, where stakeholders can present their views on the case.
US officials expressed concern about Germany’s efforts to fast-track legislation aimed at cutting healthcare costs, particularly in the pharmaceutical sector. Washington argues that these measures could negatively impact innovation-driven drug companies and international trade fairness.
The German government has not yet officially responded to the investigation. However, the move comes as Germany reviews reforms in its statutory healthcare system intended to close a funding gap estimated at around €20 billion. Earlier proposals for variable pharmaceutical discounts faced pushback from the pharmaceutical industry and were later revised.
The probe is part of a broader US trade strategy under President Donald Trump’s administration, which has already introduced global tariffs and launched multiple Section 301 investigations into trading partners. Officials have warned that the outcome of the Germany inquiry could lead to tariff measures on German imports if violations are found.
The case adds another layer of pressure on transatlantic trade relations, highlighting growing friction between economic policy priorities in Washington and Berlin as both sides navigate healthcare costs, innovation, and industrial competitiveness.