Overview
- The U.S. Trade Representative announced a formal Section 301 investigation on June 18 that will accept written comments starting June 25 and hold a public hearing in September to examine German pharmaceutical pricing practices.
- USTR Jamieson Greer said the probe targets what Washington calls “persistent underpayment” for innovative drugs and will test whether those practices are unreasonable or discriminatory and burden U.S. commerce.
- The USTR's filing says lower German prices have reduced revenue for new medicines and appear to contribute to weaker global pharmaceutical R&D, shifting a disproportionate share of research costs to U.S. patients and firms.
- The review follows Germany's proposed April healthcare reforms to cut insurer drug spending, a move that prompted industry warnings and led Eli Lilly to halve a planned €2.3 billion investment in Alzey while Germany’s health minister said higher prices would be hard to afford.
- The investigation forms part of a broader 2026 push by U.S. trade officials to use Section 301 for disputes; if violations are found the USTR could recommend tariffs or other restrictions, creating economic risk for German and EU drug exporters and uncertainty for patients and investors.