U.S. Launches Tariff Investigation Into Germany's Drug Pricing, STOXX Healthcare Falls 0.8%

On June 18 after U.S. market close, the U.S. Trade Representative criticized Germany's efforts to lower drug prices, with officials accusing Germany of "long-term low-cost procurement of innovative pharmaceuticals." The criticism triggered a formal tariff investigation into German pharmaceutical pricing policy.

In response, German Chancellor Mertz stated the government would provide relevant information to the U.S. if necessary, while reaffirming that drug reimbursement decisions are domestic policy matters. The investigation weighed on European healthcare stocks, with the STOXX 600 Personal Care, Pharmaceuticals & Groceries index dropping more than 0.8% to lows below 155.50 points.