The United States is launching a Section 301 trade investigation into Germany’s pricing of innovative medicines to determine whether German pricing underpays U.S. pharmaceutical R&D or is discriminatory.

The USTR will accept written comments starting June 25 and will hold a public hearing in September as part of the investigation process.

If the probe finds harm to U.S. commerce, retaliatory tariffs on German pharmaceutical exports and other trade measures could be deployed, potentially affecting drug market access in the U.S. and EU.

USTR officials have urged Germany to follow Britain’s recent deal as a model for constructive negotiations to address perceived pricing imbalances in medicines.

The probe is announced by U.S. Trade Representative Jamieson Greer under the 1974 Trade Act, with a docket to gather comments and a September hearing, signaling potential tariff-based actions depending on findings.

The action fits into a broader pattern of using Section 301 tools, building on past measures against overcapacity and other countries, as the administration seeks leverage to influence global drug pricing.

Germany has been pursuing reforms to reduce its health funding gap, exploring pharmaceutical discounts and a dynamic manufacturer rebate, but reforms have faced industry pushback and changes to the plan.

Germany’s coalition is aiming to make drug price savings more predictable while ensuring industry contributions to help balance statutory health insurance funds.

The investigation follows months of talks with Germany that failed to resolve the issue and references a recent U.K. deal as a potentially constructive model for negotiations.

Related diplomacy surrounds high-profile statements and gestures between U.S. and German leaders amid the broader debate on medicine pricing.

Separately, the U.S. administration restored some historical exhibits in National Parks, with a deadline to complete reinstallation by July Fourth following a court order.