As the U.S. negotiates trade polices with Europe, Sen. Tim Sheehy (R., Mont.) explained to the Washington Reporter that Germany is “freeloading” off the American pharmaceutical and defense industries.
Sheehy’s charge is the latest sign that Senate Republicans are growing more vocal about pressing wealthy European countries to pay more to help American consumers. Sheehy argued that Germany’s drug and defense policies have shifted costs onto American consumers for years.
“Europe has been freeloading off of our defense and drug industry for years,” Sheehy told the Reporter. “Germany needs to pay their fair share so we can bring prices down for American consumers.”
Sheehy’s strident criticisms of Germany come as Republicans increasingly argue that one of the best ways to lower prescription drug costs in the United States is not through government price controls, but by ending what they describe as foreign governments’ underpayment for American-developed medicines.
Sheehy, who has quickly earned a reputation as one of the Senate Republican Conference’s most respected freshman and influential senators, is the latest Republican to embrace that argument. Sheehy also introduced legislation, obtained exclusively by the Reporter, which would end the practice of foreign governments forcing American patients to shoulder the cost of developing new medicines while paying artificially low prices themselves.
That bill, called the “Use Sovereignty to Reduce Rx Act,” or USTRx Act, would upend the status quo, which he said rewards foreign governments, while placing the financial burden on American families.
“America leads the world in developing lifesaving medicines, but for too long, foreign governments have gamed the system with price controls that force hardworking Americans to pick up the tab for these drugs,” Sheehy explained. “That’s not free trade. It’s freeloading. The USTRx Act will hold trading partners accountable, protect American innovation, and put our patients and taxpayers first.”
Republicans have long contended that European governments use centralized price-setting systems to negotiate substantially lower prices than Americans pay for the same medicines, forcing U.S. patients to shoulder a disproportionate share of the cost of pharmaceutical research and development. Germany has become a particular focus because of its size and influence within Europe, with Republicans arguing that if wealthy allies paid closer to market rates, American consumers would no longer bear as much of the burden.
The issue mirrors a longstanding Republican criticism of Europe’s defense spending. For years, GOP lawmakers and President Trump have argued that NATO allies relied on American taxpayers for their security instead of investing adequately in their own militaries. Now, some Republicans are applying the same argument to pharmaceuticals.
The issue has gained momentum since President Donald Trump renewed his push for foreign countries to pay more for prescription drugs developed by American companies. Administration officials and congressional Republicans have increasingly argued that addressing international pricing disparities should be part of any broader effort to reduce drug costs in the United States.
Sheehy’s comments suggest that message is gaining traction inside the Senate Republican Conference. The Reporter will continue to closely cover trade negotiations as they progress.
