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The United States has launched an investigation into Germany’s pharmaceutical pricing policies, a move that could potentially lead to new trade measures, including tariffs.
The Office of the US Trade Representative (USTR) said the probe would examine whether Germany’s pricing practices for innovative medicines constitute unfair or discriminatory treatment that could adversely affect American businesses.
The investigation was initiated under Section 301 of the Trade Act of 1974, which allows Washington to respond to what it considers unfair trade practices by foreign governments.
According to a notice published by the USTR, available evidence suggests that Germany applies pricing policies that limit payments for innovative pharmaceutical products, potentially reducing incentives for research and development.
The US trade office argued that such practices have resulted in American companies and patients bearing a disproportionate share of global pharmaceutical research costs.
US Trade Representative Jamieson Greer said in a statement that the investigation aligns with President Donald Trump’s position that American patients should not carry an unfair burden in funding global pharmaceutical innovation.
He cited Germany’s plans to fast-track legislation “that would further reduce its spending on innovative pharmaceuticals.”
“President [Donald] Trump has made clear that American patients should not be shouldering a disproportionate share of global pharmaceutical research and development,” Greer said.
Germany is currently seeking to reform its statutory health insurance system, including reducing medicine costs, amid financial pressures.
The USTR will receive public comments and hold a hearing in September as part of the investigation.
A German health ministry spokesperson confirmed on Friday that Berlin was aware of the probe and had held discussions with US officials on pharmaceutical pricing but declined to provide further details.
Germany’s Health Minister Nina Warken said earlier that talks with Washington on the issue had been constructive but noted that the country’s strained health insurance finances made higher medicine prices difficult to sustain.
The investigation comes as the Trump administration continues to rely on trade probes to impose new duties after several broad tariff measures were struck down by the US Supreme Court earlier this year.
