Overview
- U.S. Trade Representative Jamieson Greer opened a formal Section 301 investigation on June 18 to assess whether German reimbursement and pricing rules amount to persistent underpayment that burdens U.S. commerce.
- The USTR said it will accept written comments later this month and will hold a public Section 301 hearing in September as part of the formal review process.
- Section 301 is a U.S. trade tool that lets officials investigate foreign practices and, if they find wrongdoing, impose remedies such as tariffs or other trade restrictions against targeted goods.
- The probe follows months of talks and recent German healthcare reforms aimed at about €16 billion in savings that have already led companies like Eli Lilly to cut a planned €2.3 billion investment in Germany.
- The action broadens a 2026 pattern of USTR cases on drug pricing, could prompt European retaliation if trade measures are imposed, and may affect drug access, investment decisions, and how R&D costs are shared across countries.