Drug Pricing in Germany in the Crosshairs of the United States

Stiftung Wissenschaft und Politik · Oct 30, 2026

On 18 June 2026, the United States Trade Representative (USTR) launched an investi­gation under Section 301 of the Trade Act of 1974 into Germany’s pharmaceutical policy. The investigation could ultimately lead to tariffs being imposed on German exports to the United States. This is the first time the US government has used these legal powers to challenge drug pricing abroad. Although the regulation of pharmaceutical costs falls within national competence, defensive measures against US tariffs fall within the exclusive competence of the European Union (EU), which could con­sider invoking its…