U.S. Officials Examine Germany’s Lower Drug Prices in Trade Hearing

U.S. trade officials held a public hearing on September 22, 2026, examining whether Germany’s system for pricing innovative medicines unfairly suppresses prices and harms U.S. pharmaceutical companies.

The hearing is part of a Section 301 investigation launched by the U.S. Trade Representative in June. Washington argues that Germany’s lower prices shift a disproportionate share of global research-and-development costs onto American consumers.

USTR is focusing on Germany’s confidential pricing discounts—reportedly including a mandatory 9% reduction—and proposed legislation that could impose additional rebates on patented medicines.

German officials rejected the allegations, saying the country’s pricing system is balanced, ensures access to medicines, and does not discriminate against U.S. companies.

The investigation could eventually lead to negotiations, tariffs, or other trade measures, though U.S. officials have also indicated they hope to reach an agreement with Germany.

The dispute comes as Germany seeks to reduce healthcare spending amid a projected multibillion-euro funding gap.