US launches Section 301 probe into Germany

On June 18, 2026, the United States launched a Section 301 investigation into Germany’s treatment of innovative pharmaceutical products. The inquiry focuses on whether what is described as persistent underpayment for such medicines is unreasonable or discriminatory and whether it burdens or restricts U.S. commerce. The investigation is being conducted under the Trade Act of 1974, which provides a framework for examining and responding to foreign trade practices.

U.S. Trade Representative Jamieson Greer announced the action and highlighted concerns that Germany is moving quickly with legislation that would further reduce spending on innovative pharmaceuticals. The probe adds Germany to a list of countries whose practices have already been scrutinized under similar Section 301 investigations.

As part of the investigation, the Office of the U.S. Trade Representative will open a docket for written comments on June 25, 2026. Interested stakeholders will be able to submit views on Germany’s pharmaceutical spending policies and their effects on U.S. commerce. A public hearing before the Section 301 Committee is scheduled to take place in September 2026, providing another forum for testimony and evidence.

These procedural steps are standard features of Section 301 investigations and are intended to gather detailed factual input before any determinations are made. The investigation’s findings will guide whether the United States pursues any response measures.

The U.S. action follows plans unveiled in April by Germany’s Ministry of Health for a broad overhaul of the country’s statutory healthcare system. The reform is aimed at closing an estimated €20 billion funding gap in the system. Among its elements, the original proposal included variable discounts on pharmaceuticals as a way to curb spending.

A German government source indicated that this initial plan is being replaced after opposition from the pharmaceutical industry. While details of the replacement measures were not specified, the U.S. Trade Representative has signaled concern that fast-tracked legislation could still further reduce spending on innovative medicines, prompting the current probe.

If the Section 301 investigation concludes that Germany’s practices are unreasonable or discriminatory and burden U.S. commerce, the United States could respond with tariff-related measures on German imports. Such steps would follow the completion of the investigation and any required consultations.

For now, the process remains at an investigative stage, centered on fact-finding through written submissions and the upcoming public hearing. The outcome will be closely watched by pharmaceutical companies, trade policymakers, and German officials as they balance healthcare cost pressures with international trade obligations.