Overview
- The Office of the U.S. Trade Representative formally opened a Section 301 investigation on Friday, June 19, 2026, to determine whether Germany pays too little for innovative drugs and thereby shifts research and development costs onto U.S. patients.
- The probe uses Section 301 of the U.S. Trade Act of 1974, a law that allows Washington to investigate unfair trade practices and, if it finds violations, impose tariffs or other trade measures.
- The USTR will accept written submissions starting June 25 and will hold a public hearing in September as part of the fact-finding process.
- The German government said it will seek dialogue with Washington, consult its health ministry and coordinate with the European Union, and Chancellor Friedrich Merz urged the U.S. to respect the existing EU–U.S. tariff understanding.
- If tariffs or other restrictions follow, the move could affect pharma investment decisions and supply chains, raise costs for patients and insurers in Germany and the United States, and complicate ongoing EU–U.S. negotiations over tariff limits and trade rules.