US launches trade probe into Germany over medicine prices
The US Trade Representative's office has initiated a trade investigation into Germany's drug pricing, alleging that Germany underpays for innovative medicines, forcing US patients to shoulder a disproportionate share of research and development costs.
The United States has launched a trade investigation against Germany over drug pricing, according to a statement from the office of US Trade Representative Jamieson Greer on Thursday. The probe aims to determine whether innovative medicines are systematically undercompensated in the German market, leaving US patients to cover a disproportionately high share of research and development expenses.
Greer expressed particular concern over reports that Germany is fast-tracking legislation that would further reduce spending on innovative medicines. The investigation follows months of talks with the German federal government that have not yielded a solution. Depending on the findings, the US could consider trade measures, including punitive tariffs.
Washington has long argued that European healthcare systems benefit from lower drug prices while American consumers foot a larger share of innovation costs. At the center of the dispute is Germany's planned health reform, which aims to plug a multi-billion-euro gap in the statutory health insurance system. The reform includes additional savings from the pharmaceutical industry, initially through a dynamic manufacturer rebate linked to drug price trends and insurers' revenues. Under the latest proposals, a fixed surcharge on the existing manufacturer discount is being discussed instead.
Federal Health Minister Nina Warken (CDU) has proposed exempting companies from additional rebates if they conduct clinical trials in Germany, aiming to strengthen the country as a research hub. The Bundestag vote on the reform, originally scheduled for next week, has been postponed to July 10, the last sitting day before the summer recess.
