US launches trade investigation against Germany - Washington accuses Berlin of too low prices for new drugs
The United States has launched a trade investigation into Germany's drug pricing policies. Washington says it wants to examine whether innovative drugs are being undervalued in Germany, leaving American patients shouldering a disproportionate share of pharmaceutical research and development costs.
The announcement was made in a statement by US Trade Representative Jamieson Greer, who said the investigation will determine whether "Germany's continued payment for innovative pharmaceutical products is unreasonable or discriminatory and burdens or restricts US trade." The investigation comes after months of discussions between Washington and Berlin aimed at resolving the dispute.
The Trump administration argues that Germany's pricing system, which includes negotiated discounts and mandatory rebates, lowers the prices paid for new drugs. U.S. officials say it leaves American patients bearing a greater share of the costs of developing new drugs.
"I am particularly concerned by reports that Germany is accelerating legislation that would further reduce spending on innovative medicines," Greer said.
This action follows a directive issued by President Donald Trump on May 12, 2025, which directed the U.S. Trade Representative to take action against foreign policies that force American patients to pay a disproportionate share of global pharmaceutical research and development costs.
"President Trump has made it clear that American patients should not bear a disproportionate share of global pharmaceutical research and development," Greer said.
If the investigation concludes that Germany's policies are unfair, the US could impose tariffs or other trade restrictions under Section 301 of the Trade Act. The US has requested consultations with Germany, and a public hearing is scheduled for September.
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