US opens Section 301 probe into Germany drug pricing rules
Why it matters: The case could escalate a dispute over who pays for new medicines as Germany pushes cost cuts in public health insurance.
The United States has opened a Section 301 trade investigation into Germany’s pharmaceutical pricing policies, targeting what Washington described as chronic underpayment for medicines. The move zeroes in on German efforts to curb rising health care costs, including a draft overhaul of the health insurance system that would require bigger discounts from drugmakers. U.S. Trade Representative Jamieson Greer tied the probe to the Trump administration’s push to make trading partners bear more of the cost of drug research and development. German officials had been discussing the issue with the United States for months. The legislation is still moving through Germany’s parliament, and the Health Ministry did not immediately respond to a request for comment.