The US just picked a fight with its closest European ally over pill prices. On June 18, the US Trade Representative launched a formal Section 301 investigation into Germany’s pharmaceutical pricing practices, alleging that Berlin’s reimbursement policies amount to “persistent underpayment for innovative pharmaceutical products.”
The core argument from Washington: German price controls force American patients and companies to effectively subsidize global drug research and development costs.
What Section 301 actually means
Section 301 gives the USTR authority to investigate foreign trade practices deemed unreasonable, unjustifiable, or discriminatory, and then impose tariffs or other restrictions if the investigation finds merit. It’s the same tool the US famously used against China in 2018 to justify sweeping tariffs on hundreds of billions of dollars in goods.
In this case, USTR Jamieson Greer is turning that tool toward Berlin. The investigation will assess whether Germany’s drug pricing policies are unreasonable or discriminatory and whether they burden US commerce.
