The United States has launched an investigation into Germany's pharmaceutical pricing policies, a move that could pave the way for new punitive tariffs. Washington is examining whether Germany's practices result in persistent underpayment for innovative pharmaceutical products, which would burden US commerce under Section 301 trade authorities.
Washington accuses Berlin of keeping the prices it pays for new medicines too low, while the US market pays significantly more for the same products. This probe follows an announcement from Berlin that it would require drugmakers to offer bigger discounts on medicines.
U.S. Trade Representative Jamieson Greer described Germany's proposal to reduce spending on medicines as a serious step backwards. The investigation will determine if Germany's pricing policies are unfair and if levies on its goods are warranted in retaliation.