US Launches Trade Probe Into German Pharmaceutical Pricing

The Office of the United States Trade Representative launched a trade investigation into Germany on June 18, 2026, regarding the country's pharmaceutical pricing policies. Using Section 301 of the Trade Act of 1974, the probe examines whether Germany's underpayment for innovative medicines is unreasonable, discriminatory, or restrictive to U.S. commerce.

U.S. Trade Representative Jamieson Greer stated the investigation follows months of unsuccessful discussions and expressed concern over legislation Germany is fast-tracking to further reduce spending. The move aligns with a broader effort by the administration of President Donald Trump to find alternative methods for imposing trade penalties after the Supreme Court of the United States struck down several tariffs earlier this year.

The dispute centers on a German Ministry of Health plan from April to close a 20 billion euro funding gap in its statutory healthcare system through spending cuts. U.S. officials contend these practices force American patients to shoulder a disproportionate share of global research and development costs. Greer urged Germany to enter constructive negotiations similar to a pricing arrangement the U.S. reached with Britain on April 2.

The Office of the United States Trade Representative will open a docket for written comments on June 25 and hold a public hearing in September. If the probe concludes that German policies are unfair, the United States may impose tariffs on German imports.