The Trump administration has launched a trade investigation into Germany’s pharmaceutical pricing policies, arguing that the country pays too little for innovative medicines and shifts a disproportionate share of research costs onto American consumers.
Greer said the planned changes could further lower payments for pharmaceutical companies and discourage innovation.
The investigation was opened under Section 301 of the Trade Act, which allows Washington to take action against foreign practices deemed harmful to U.S. commerce. The report said the probe could ultimately lead to tariffs if concerns are not addressed.
The Trump administration has made lowering drug prices a key policy objective while also urging foreign governments to contribute more toward pharmaceutical research and development. Critics, however, argue that such policies could reduce incentives for innovation.
Several pharmaceutical executives have also warned that lower international pricing could delay or limit the launch of new medicines in certain markets, according to the report.
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The US has launched a trade investigation into a German plan to lower its spending on pharmaceutical products, to see whether it is unreasonable or discriminatory, US Trade Representative Jamieson Greer said https://t.co/S0v1hNr7z2 pic.twitter.com/QBs2oSpcME
— Reuters (@Reuters) June 19, 2026
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