US launches trade probe into Germany over medicine prices
Poinews.com – The United States has initiated a trade investigation into Germany’s drug pricing practices, citing concerns about the valuation of innovative medications. According to US Trade Representative Jamieson Greer, the focus is on assessing whether Germany’s pricing model unfairly shifts the burden of pharmaceutical research and development to American patients.
The probe was announced on Thursday, with Greer stating that the inquiry will determine if Germany’s “persistent underpayment for innovative pharmaceutical products is unreasonable or discriminatory, and if it burdens or restricts US commerce.” This follows ongoing talks between Washington and Berlin to address the pricing dispute.
“I am particularly concerned by reports that Germany is fast-tracking legislation to further reduce spending on innovative medicines,” Greer remarked.
President Donald Trump directed the action on 12 May 2025, urging the US Trade Representative to counter foreign policies that force American patients to cover more of the global pharmaceutical R&D costs. Greer reiterated this stance, emphasizing that “American patients should not be shouldering a disproportionate share of global pharmaceutical research and development.”
If the investigation finds Germany’s policies unfair, the US may impose tariffs or trade restrictions under Section 301 of the Trade Act. The process includes consultations with Germany and a public hearing set for September.
German healthcare reform under scrutiny
Washington has criticized Germany’s planned healthcare reforms, which aim to address a significant funding shortfall in the public health insurance system. The reforms include additional savings contributions from the pharmaceutical industry to stabilize healthcare funds.
Initially, the plan involved dynamic manufacturer rebates tied to drug price trends and insurer revenues. Now, discussions center on a fixed surcharge applied to existing discounts. Federal Health Minister Nina Warken (CDU) also proposed exempting companies from extra rebates if they conduct clinical trials in Germany, seeking to boost the country as a research hub.
A key healthcare reform package, proposed by Warken, was postponed after the Bundestag delayed a vote. The final decision is expected on 10 July, the last day before the summer recess.
