The United States has launched an investigation into Germany's pharmaceutical pricing policies to determine if the country is underpaying for innovative medicines. This move, conducted under Section 301 trade authorities, aims to examine whether Germany's pricing practices unfairly burden US commerce.
Washington accuses Berlin of keeping prices for new medicines too low, while the US market pays significantly more for the same products. US Trade Representative Jamieson Greer described Germany's proposal to reduce spending on medicines as a serious step backwards.
The probe into the persistent underpayment for innovative pharmaceutical products sets the stage for potential retaliation. If the investigation finds Germany's policies are unfair, the United States could impose punitive tariffs or levies on German goods.