The United States initiates a trade investigation against Germany's drug pricing.

The United States has launched a trade investigation into Germany's plan to cut pharmaceutical spending, which may lead to a new round of tariffs. The Trump administration announced on Thursday evening that it has initiated a Section 301 investigation, specifically targeting Germany for its "long-standing practice of low-price purchasing of innovative pharmaceuticals," according to U.S. Trade Representative Greil. Greil stated, "President Trump has made it clear that global drug development costs should not be disproportionately borne by American patients." The trigger for this investigation was Germany's plan announced in April this year to require pharmaceutical companies to increase discounts on drugs, saving billions of dollars in spending annually to fill the funding gap in the public healthcare system. A spokesperson for the German Federal Ministry of Health stated that the government will not comment on policies of other countries and added that Health Minister Nina Vaknin is in communication with the U.S. on drug pricing issues. Germany's proposal has already faced opposition from the pharmaceutical industry, with companies like Roche and Boehringer Ingelheim cutting investment plans in Germany after the policy was announced, warning that the policy adjustment will hinder pharmaceutical innovation. This investigation is another round launched by the U.S. under Section 301 of the Trade Act of 1974. This provision gives the President the power to impose tariffs on countries that discriminate against American businesses without congressional approval. The entire investigation process is expected to take several months. Greil urged Germany to follow the example of the UK, which has committed to increase spending on innovative drug purchases to avoid the proposed U.S. tariffs. Although the U.S. theoretically can impose tariffs on individual EU member states, it is currently unclear how the new tariffs will be implemented. The trade agreement reached between the U.S. and EU last year stipulates that the maximum tariffs on both sides for pharmaceutical products remain at 15%. EU lawmakers recently passed a bill to eliminate tariffs on multiple U.S. imports, fulfilling a commitment made in the agreement reached last year. Earlier this year, Trump threatened to impose new tariffs on the EU, citing delays in the implementation of the agreement.