USTR Opens Section 301 Investigation into Germany’s Pharmaceutical Pricing
Published June 21, 2026
Key Points
- On June 18, 2026, the U.S. Trade Representative opened a Section 301 investigation into whether Germany’s persistent underpayment for innovative pharmaceutical products is unreasonable or discriminatory and burdens or restricts U.S. commerce.
- The investigation follows months of discussions with German partners and concern over legislation that would further reduce Germany’s spending on innovative pharmaceuticals.
- USTR has requested consultations with the Government of Germany and consulted the inter-agency Section 301 Committee before opening the case.
- The investigation focuses on a 9 percent price discount tied to pricing confidentiality and draft 2026 German legislation that would add a mandatory rebate on patented medicines starting in 2027.
- Written comments and requests to appear at the hearing are due August 10, 2026, with a public hearing set for September 22, 2026.
The Office of the United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into Germany’s persistent underpayment for innovative pharmaceutical products. The investigation will determine whether Germany’s practices are unreasonable or discriminatory and burden or restrict U.S. commerce. According to USTR’s press release, the administration’s position is that American patients should not shoulder a disproportionate share of global pharmaceutical research and development. The action is detailed in a Federal Register notice, which describes the scope of the investigation and opens a public comment and hearing process through the inter-agency Section 301 Committee. The investigation follows months of discussions with German partners.
U.S. Trade Representative Jamieson Greer said American patients should not shoulder a disproportionate share of global pharmaceutical R&D. In his statement, he raised particular concern over Germany’s planned legislation:
“I am particularly concerned with news that Germany is fast-tracking legislation that would further reduce its spending on innovative pharmaceuticals. This is a serious step backwards at a time when our trading partners need to step up and start paying their fair share to fund innovative pharmaceutical research and development. We believe that the United States and Germany can find a path forward that expands access to the most innovative drugs for the German people while ensuring fair reimbursement for the pharmaceuticals made by American workers.”
Meanwhile, Department of Health and Human Services Secretary Robert F. Kennedy, Jr. called the fight against disease a shared burden across wealthy nations and said the United States is asking Germany to pay its fair share for the innovative treatments its people use. He said fair reimbursement strengthens medical innovation and helps support the development of the next generation of lifesaving cures.
What’s Being Investigated?
The investigation relates to allegations of Germany’s unfair pricing policies and practices for innovative pharmaceutical products, which result in the United States paying a disproportionate share of global R&D costs. The means and tools behind these payment disparities vary, but may include:
- Supplemental discounts in exchange for confidentiality of negotiated prices
- Mandatory variable rate rebates
Public Comments and Key Deadlines
Interested parties, including law firms, trade associations, and customs brokers, can submit written comments and requests to appear at the hearing. To be assured of consideration, submissions are due by August 10, 2026. USTR will hold a public hearing on September 22, 2026.
A copy of the Federal Register notice is available on the USTR website. Dockets for written comments and for requests to appear at the public hearing are available through USTR.
Background
On May 12, 2025, the President directed the U.S. Trade Representative to take all necessary and appropriate action to address foreign practices that force American patients to pay a disproportionate amount of global pharmaceutical R&D, including by suppressing drug prices below fair market value abroad.
Section 301 of the Trade Act of 1974 addresses unjustifiable, unreasonable, or discriminatory foreign government practices that burden or restrict U.S. commerce. Under Section 302(b), the U.S. Trade Representative may self-initiate an investigation. After considering the advice of the inter-agency Section 301 Committee, the USTR must seek consultations with the foreign government involved, which it has done with Germany.
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