23 July 2025 – US President Donald Trump announced three new trade deals yesterday (Tuesday) with Japan, Indonesia and the Philippines. At the same time, the EU is becoming increasingly marginalised in the negotiations and is resorting to polemical phrases, particularly from France. The base metals in Asia and Europe are moving sideways today.
Base metals with stable sideways movement
Base metals prices on the Shanghai Futures Exchange (SHFE) moved sideways today (Wednesday). Iron ore prices on the Dalian Commodity Exchange (DCS) and the Singapore Exchange (SGX) were also able to defend their price increases of the last few days and remain at a high level.
Base metals on the European commodity exchange LME also made a stable start to trading today, having started to rise since mid-July.
New US trade deals: EU increasingly sidelined in negotiations
The fact that US President Donald Trump was able to announce the conclusion of three important trade agreements with major Asian economies – the Philippines, Indonesia and Japan – in quick succession yesterday is unlikely to have gone down well with the export-orientated European economy this morning. All three countries have made concessions to the United States on their trade barriers, securing reciprocal US tariffs of between 15% (Japan) and 19% (Philippines and Indonesia).
Commission under massive pressure to finally deliver results
In Brussels and Berlin, this is likely to have led to some headaches and angry calls as to why the European Commission has still not been able to conclude a trade agreement with the United States and now seems to be heading for a resounding failure of the negotiations.
Only polemical rhetoric from the EU towards Washington
In recent days, the polemical rhetoric in Brussels and some EU member states towards Washington has even thrown the ‘nuclear options’ in trade issues into the media spotlight and referred to the possible use of the EU’s Anti-Coercion Instrument. The French in particular and their President Emmanuel Macron are pushing for a tougher stance towards the United States.
However, it is doubtful whether this makes sense in view of the huge differences in the trade balance between the EU and the US. President Macron would be well advised to first get a grip on his internal French problems – both politically and economically – rather than haranguing the EU’s most important trading partner and making grand speeches.
One thing must be emphasised: The EU countries have considerably more to lose than the United States. This becomes clear at the latest when you take a sober and calm look at the trade balance!
Threat of 30% tariffs on EU exports from 1 August 2025
President Trump recently increased the pressure on the EU once again, threatening to impose tariffs of 30% on the EU from 1 August if a deal is not reached. The member states would be well advised to finally let someone negotiate with Trump who not only has economic expertise, but can also leave their arrogance and ideology at home.
Germany in particular must now either insist on a replacement and a short-term replacement for the EU negotiating team or go ahead itself and conclude a deal with the United States. However, it remains to be seen whether Berlin can muster the courage to do so and whether the German Social Democrats, the junior partner of the ruling Christian Democrats, are prepared to sacrifice their socialist trade commissioner for this.
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