USTR opens Section 301 probe into Germany over pricing of innovative drugs

The Office of the U.S. Trade Representative has launched a formal investigation under Section 301 of the Trade Act of 1974 into what it describes as Germany’s long-running underpayment for innovative pharmaceutical products. The review will assess whether Germany’s practices are unreasonable or discriminatory and whether they burden or restrict U.S. commerce. While no tariff rate or timetable has been set, the move could lay the groundwork for future duties on German pharmaceutical imports and has heightened concerns about U.S.-Europe trade frictions in the sector.