The United States launched an investigation on Thursday into Germany’s pharmaceutical pricing policies, a move that could ultimately result in new tariffs.
The inquiry aims to determine whether Germany’s “persistent underpayment for innovative pharmaceutical products” is unreasonable, discriminatory, or otherwise burdens U.S. commerce, according to the Office of the U.S. Trade Representative (USTR).
Initiated under Section 301 of the Trade Act of 1974, the action follows earlier Trump‑administration probes of multiple trading partners over issues such as forced labor and industrial overcapacity.
A Federal Register notice from the USTR states that “evidence indicates that Germany implements unfair pricing policies and practices with regard to innovative pharmaceutical products.”
The notice adds that the reduced revenues associated with these practices appear to limit investment in research and development, among other concerns.
“As a result, the United States pays a disproportionate share of global R&D costs for innovative pharmaceuticals,” the notice reads.
The investigation will examine the mechanisms Germany uses to enforce its pricing policies.
USTR Trade Representative Jamieson Greer said, “President Trump has made clear that American patients should not be shouldering a disproportionate share of global pharmaceutical research and development.”
Greer also expressed concern about Germany’s plans to accelerate legislation that could further cut spending on innovative pharmaceuticals.
The trade office will solicit comments and hold a hearing on the matter in September.
Earlier this month, the USTR proposed tariffs of up to 12.5 % on dozens of economies under its forced‑labor investigation.
Since returning to the White House, President Trump has implemented extensive tariffs, many of which were struck down by the Supreme Court in February. His administration is now turning to trade probes as a means of imposing more durable duties.
(FRANCE 24 with AFP)
