U.S. opens trade investigation into Germany over drug pricing policies

The United States has launched a trade investigation targeting Germany's drug pricing policies, escalating a transatlantic dispute. The probe, announced by the U.S. Trade Representative, examines whether Germany's plans to lower drug payments constitute an unfair burden on U.S. pharmaceutical research and development. Germany has warned the move could jeopardize a recent trade truce. This investigation reflects the Biden administration's broader strategy to scrutinize foreign pricing systems it believes disadvantage American innovation, and could influence future domestic drug pricing debates.