The U.S. government launched a Section 301 investigation into Germany’s drug pricing policies, arguing the country shifts an outsized share of global R&D costs onto the United States. USTR ambassador Jamieson Greer announced the probe under the Trade Act of 1974, citing concerns that Germany is fast-tracking legislation that would further reduce spending on innovative pharmaceuticals. The investigation follows Germany’s draft healthcare cost-saving law aimed at cutting more than €16 billion by controlling insurer insurance-rate pressures. U.S. officials said they expect a public hearing on Sept. 22 and outlined potential remedies if the probe finds the U.S. is unreasonably impacted, including confidential supplemental discounts or mandatory variable rate rebates. The action comes after U.S.-Germany negotiations and after industry pushback, including Eli Lilly CEO David Ricks warning the changes would send a negative signal to drugmakers and Reuters reporting one contentious element was dropped. The probe also echoed a U.K.-U.S. approach where the government pays more for innovation in exchange for protection from U.S. drug tariffs.