Europe Stunned by Trump’s First 100 Days: ’Unprecedented Chaos’

European leaders scramble as Trump’s policies hit like a crypto flash crash—volatile, unpredictable, and leaving traditional alliances in the dust.

Diplomatic playbooks? Outdated. Trade deals? Rewritten overnight. The old guard never saw this coming—just like Wall Street missed Bitcoin’s last bull run.

Bonus jab: At least the EU didn’t invest its treasury reserves in TrumpCoin.

Trump’s trade moves slam Europe with tariffs and confusion

The EU is now stuck in limbo over Trump’s trade rules. Right after he got back in office, he threw a 20% duty on all EU exports to the US Then he suddenly pulled it back, calling for talks instead. European officials had their own tariffs ready to strike back, but those plans got shelved when Trump paused his own.

Despite that pause, Europe is still getting slammed with tariffs on aluminum, steel, and cars. Nothing’s settled. Even if both sides manage to cut a deal, the EU still expects to get hit with the Ripple effects from Trump’s fight with China and other trade partners.

At the IMF World Bank Spring Meetings, European Central Bank officials didn’t hide their frustration. They said the trade mess could hit the region’s economic growth, and no one’s really sure how it might affect inflation. Everyone kept using the same word: uncertainty.

Robert Holzmann, the head of Austria’s central bank, told CNBC, “We have not seen this uncertainty now for years.” He said until things calm down, major decisions are on hold. “Unless the uncertainty subsides, by the right decisions, we will have to hold back a number of our decisions, and hence, we don’t know yet in what direction monetary policy should be best moved.”

Klaas Knot, who runs The Netherlands Bank, said it reminded him of the early days of the Covid-19 pandemic. He said, “In the short run, it’s crystal clear that the uncertainty that is created by the unpredictability of the tariff actions by the US government works as a strong negative factor for growth.”

Not everyone sees a total breakdown coming. Joerg Kukies, the acting German finance minister, told CNBC he didn’t think the situation was “anywhere NEAR a crisis moment.” He added that it would take much more for US-Europe trust to collapse, but it’s clear things are getting worse, not better.

US stance on Ukraine leaves Europe exposed

Europe’s second problem is Trump’s changing position on Ukraine. Leaders don’t know how much longer the US is going to back Ukraine’s defense against Russia. During his campaign, Trump said he’d end the war in a single day. He’s already walked that back. While talks about a possible ceasefire started early in his second term, there’s been no progress at all.

Kallas said the EU has done more than anyone to support Kyiv. “We have supported Ukraine more than anybody else,” she said. She admitted the US has given “a great share” as well, but warned that if Washington pulls out now, things get much harder. “If they are not supporting Ukraine anymore then it’s becoming more difficult,” she said.

Kallas said the EU might manage the financial side of Ukraine’s support alone. “I think in terms of the monetary means we can do this,” she told CNBC. But on military support, it’s a different story. “Of course the question regarding some military capabilities is much more difficult,” she said.

She also made one thing clear: Europe expects the US to stay in the fight. “I hope the US remains on the right side of history,” Kallas said.

By Monday, she added that more pressure had to be placed on Russia to even get close to peace talks. With Trump backing away from clear positions and the US refusing to fully commit to its previous stance, Brussels is being forced to rethink its own defense and diplomatic strategy.

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