U.S. Launches Trade Investigation Into Germany Over Pharmaceutical Pricing Policies

Jun 19, 2026

The United States has launched a Section 301 trade investigation into Germany over its pharmaceutical pricing policies, targeting what U.S. Trade Representative Jamieson Greer calls the "persistent underpayment" of innovative medicines. The probe comes as Germany advances legislation to close a 20 billion euro healthcare funding gap. Chancellor Friedrich Merz defended Germany's national jurisdiction over healthcare, while U.S. officials urged Germany to negotiate a pricing deal similar to the U.S.-U.K. agreement.

U.S. Section 301 investigation

▪The United States Trade Representative will open a docket for written comments on June 25, 2026, and hold a public hearing in September 2026.
▪The United States Trade Representative launched a Section 301 trade investigation into Germany over its pharmaceutical pricing policies on June 18, 2026.

German pharmaceutical cost-cutting legislation

▪Germany's proposed health insurance overhaul included cost-saving measures such as higher discounts for insurance funds from the pharmaceutical industry.
▪The German Ministry of Health proposed a wide-ranging overhaul of its statutory healthcare system in April 2026 to reduce a 20 billion euro funding gap.

Most Favored Nation policy

▪The Trump administration reached agreements with 17 of the largest pharmaceutical companies to voluntarily lower United States drug prices in exchange for tariff exemptions.
▪The Trump administration introduced the Most Favored Nation drug policy in 2025 to tie United States medicine prices to lower prices abroad.

U.S.-Germany trade dispute responses

▪German Chancellor Friedrich Merz stated that drug reimbursements by German health insurance providers are a matter of national jurisdiction.
▪German Chancellor Friedrich Merz stated on June 19, 2026, that he assumes the United States will abide by its existing trade agreement with the European Union.

European drug pricing

▪The United Kingdom agreed to pay higher prices for new drugs through its National Health Service in exchange for a pharmaceutical tariff exemption.
▪United States Trade Representative Jamieson Greer suggested Germany negotiate a deal similar to the United States-United Kingdom agreement to resolve the pricing dispute.

Innovation investment concerns

▪Critics of the Most Favored Nation policy argue that tying drug prices to foreign rates stifles innovation and disincentivizes research and development investment.
▪Pharmaceutical executives warned that European countries risk missing out on novel medicines if United States prices are tied to lower prices elsewhere.