US officials head to Berlin for drug pricing talks

US officials will travel to Berlin in mid-November for talks with the German government on its drug pricing policies, a German government spokesperson confirmed to POLITICO.

The meeting will include U.S. trade and health officials and Germany's economy and health ministries. A German economy ministry spokesperson said it is part of consultations required under Section 301 probes. U.S. Trade Representative Jamieson Greer is not expected to attend, according to five officials and diplomats cited by POLITICO.

The Trump administration launched a trade investigation into Berlin's pricing policies in June. It alleges Germany underpays for new drugs, leaving the U.S. to bear a disproportionate share of global development costs. Germany faces the prospect of U.S. tariffs if it does not reach an agreement with Washington.

U.S. pharmaceutical lobbyists want Germany to raise its spending on new medicines as a share of GDP, reverse recent changes that discount prices of innovative drugs, and create an oversight mechanism to ensure any commitments are carried out. The sources said the delegation's trip could indicate a possible deal, but one former USTR official cited in the report spoke on condition of anonymity.

Chancellor Friedrich Merz has said drug pricing is "a purely domestic matter." The German government spokesperson said the consultations are meant to explain Germany's system of paying the pharmaceutical sector more for medicines that offer the greatest value, along with recent changes to statutory health insurance financing. The agenda is confidential. USTR did not respond to a request for comment.

The talks come as the EU looks for a coordinated response to tariff threats. France and Italy have also faced U.S. pressure over drug pricing. The German spokesperson noted that the EU-U.S. tariff agreement sets a 15% tariff cap and said compliance serves U.S. interests. Some EU governments want an EU-wide pharma task force with the European Commission, but others warn that health is a national competence within the 27-member bloc. French Trade Minister Nicolas Forissier said, "if we don't work together and act as a team, countries are inevitably tempted to go it alone." Greer has been invited to Brussels at the end of the month to meet EU trade ministers, where the issue is expected to come up.