U.S. Opens Tariff Probe Into Germany’s Drug Pricing Policies

The United States has launched a Section 301 investigation into Germany’s pharmaceutical pricing and reimbursement rules, saying the country may be underpaying for innovative medicines and placing more of the global research burden on American patients. U.S. Trade Representative Jamieson Greer said the probe will examine whether Germany’s policies are discriminatory, especially as Berlin moves ahead with reforms aimed at reducing healthcare costs. Those changes include higher discounts from drugmakers to public insurers, a step that has already prompted warnings from some pharmaceutical companies. Germany says the overhaul is part of an effort to ease pressure on public finances and control rising health spending. Chancellor Friedrich Merz said the issue of reimbursements is a matter of national jurisdiction and added that Germany would share information with the U.S. if asked. The investigation could lead to tariffs, although U.S. officials said the dispute may still be resolved through negotiations.