EU Parliament chief urges Germany to strike deal with US over drug pricing

European Parliament President Roberta Metsola, speaking to Politico in New York during the UN General Assembly, said Germany should pursue direct negotiations with the Trump administration to resolve a dispute over pharmaceutical pricing. She warned that failing to reach a deal could lead to harsher consequences than expected.

The Office of the U.S. Trade Representative is investigating German drug pricing policy, alleging persistent underpayment for pharmaceutical products. A recent hearing in Washington saw most witnesses back that claim, and the probe could eventually justify new U.S. tariffs on German exports. Metsola called for compromise to avoid what she described as an impossible race on drugs, arguing Europe can still lead in pharmaceuticals if it becomes more agile on pricing and clinical trials.

Warning to Washington

While favoring negotiation over confrontation, Metsola cautioned that any tariff increase on German goods could breach the 15% tariff ceiling agreed by Trump and European Commission President Ursula von der Leyen last year in Turnberry, Scotland. She pointed to a suspension clause built into that agreement, warning of legal consequences if the U.S. targets individual EU states. She raised the same warning over steel and aluminum derivative tariffs, which under the deal must align with the 15% ceiling by year's end.

Other issues

On artificial intelligence, Metsola called for guardrails, saying the real competition is not between the EU and U.S. but between democratic and autocratic AI. She also addressed EU-China relations, calling for an honest and confident dialogue as trade talks continue, and urged the 10 remaining EU states to ratify the long-pending CETA trade deal with Canada. Metsola declined to confirm whether she would seek a third term as Parliament president in 2027.