Why is the US targeting Germany's drug industry?
Key takeaways
- A new trade probe is reigniting a long-running clash over who should pay for medical innovation.
- Now, the Trump administration is targeting Germany with an investigation.
- The conflict touches on a core aspect of health policy.
Why this matters: an international story with cross-border implications worth tracking.
A new trade probe is reigniting a long-running clash over who should pay for medical innovation. Washington argues Germans benefit from lower prices while US patients shoulder a disproportionate share of the costs.
https://p.dw.com/p/5G8Wh Globally, US and German patients pay the most for medication but the systems could hardly be more different Image: Jan Woitas/dpa-Zentralbild/picture alliance Advertisement In the world according to Donald Trump, every nation on the face of the earth is "ripping off" the United States — that goes for pharmaceuticals, too, especially those from Germany.
Now, the Trump administration is targeting Germany with an investigation. Washington says it wants to find out if US patients and businesses are being forced to pay disproportionately higher prices for the research and development of top-tier pharmaceuticals so that German patients can pay less. The inquiry, scheduled to wrap up in September, is based on Section 301 of the Trade Act of 1974 and could ultimately lead to new US tariffs.