Washington accuses Berlin of keeping the prices it pays for new medicines too low, while the US market pays significantly more for the same products. If the investigation finds Germany's policies are unfair, the United States could impose punitive tariffs.

The EU health ministers have tasked the European Health Commissioner to assess the impact of the US’ most-favourite-nation policy on the bloc.

America has started a trade probe into Germany's plan to cut pharmaceutical spending. U.S. Trade Representative Jamieson Greer stated the investigation will determine if Germany's…