Key facts
- European Parliament President Roberta Metsola advised Germany to negotiate a deal with the Trump administration over drug pricing.
- The U.S. Trade Representative is investigating Germany's drug pricing policies, accusing it of "persistent underpayment" for pharmaceuticals.
- Metsola warned that U.S. tariff increases on German goods could violate a 15% tariff ceiling agreed upon in a previous trade deal.
- Metsola called for "guardrails" for artificial intelligence and emphasized cooperation between the EU and US on democratic AI.
- Metsola advocated for the EU to have an "honest," "strong," and "self-confident" conversation with Beijing regarding trade imbalances and critical raw materials.
- Metsola urged remaining EU countries to ratify the CETA free-trade deal with Canada.
European Parliament President Roberta Metsola has advised Germany to pursue a negotiated settlement with the Trump administration to resolve a trade dispute concerning drug pricing. Metsola stated in an interview with POLITICO that direct talks and a deal are necessary to avoid a more difficult situation.
The Office of the U.S. Trade Representative is currently examining Germany's pharmaceutical pricing policies, alleging "persistent underpayment." This investigation could potentially provide grounds for President Donald Trump to impose new tariffs on German exports.
Metsola emphasized the need for Europe to be more agile in pricing, clinical trials, and market introduction of new products to maintain its leadership in the pharmaceutical sector. She warned that any increase in U.S. tariffs on German goods might contravene the 15% tariff ceiling established in a previous trade agreement between the U.S. and the European Commission. Metsola highlighted a suspension clause within that agreement, indicating potential legal repercussions if the U.S. targets individual EU countries.
She also reiterated concerns regarding potential U.S. tariffs on steel and aluminum derivatives, noting that non-compliance by the U.S. with the agreed-upon tariff ceiling by year-end would trigger the suspension clause.
Separately, Metsola called for "guardrails" for artificial intelligence, advocating for a collaborative approach between the EU and the U.S. to foster "democratic AI" in contrast to "autocratic AI." She also addressed the EU's digital sovereignty, acknowledging dependence on U.S. technology but also highlighting the significance of the EU market for U.S. tech companies. Metsola suggested that the EU's Digital Services Act could serve as a basis for a future liability mechanism for U.S. tech giants.
Regarding EU-China relations, Metsola stressed the need for an "honest," "strong," and "self-confident" dialogue, particularly concerning market access for European companies, trade imbalances, overcapacity, and critical raw materials. She also urged the remaining EU countries to ratify the CETA free-trade agreement with Canada and expressed optimism about sealing a Digital Trade Agreement at an upcoming summit.
Metsola also commented on political alliances, stating her preference for building majorities from the center outwards to ensure predictability and stability.