European leaders were delayed after the first 100 days of U.S. President Donald Trump’s second term, and geopolitical and trade turmoil continued to rise.
When asked what Trump’s first 100 days meant to Bloc, it was different from anything else we’ve seen from the U.S. government before when asked what it means to Trump’s first 100 days. ”
Karas told CNBC's Silvia Amaro that it was a "very intense" and "destructive" time, adding that "there is a lot of unpredictability."
“So that’s how we’ve been trying to manage with the new government,” she said.
Europe faces uncertainty on two fronts due to Trump's policies: trade and Russia's war against Ukraine.
Trump imposed, and then temporarily reduced the 20% blanket tariff on EU-U.S. exports to negotiate. The group has prepared its own countermeasures, but these have been put on hold after Trump stopped his own policies. It also faces tariffs on aluminum, steel and automobiles.
But even if an agreement is reached, the EU is widely expected to be affected by ongoing trade disputes between the United States and other trading partners, such as China.
European Central Bank policymakers told CNBC last week at the IMF World Bank spring meeting that European economic growth is expected to suffer from trade tensions, while the impact on inflation is vague.
"We have not seen this uncertainty for years," said Robert Holzmann, Governor of the Central Bank of Austria, adding: "Unless the uncertainty subsides, we will have to give up many of our decisions, and therefore, we do not yet know where the monetary policy should be relocated best."
Meanwhile, Dutch Bank President Klaas Knot compared the current uncertainty with what happened in the early experience of the 19th pandemic.
"In the short term, it's clear that the uncertainty caused by the U.S. government's unpredictability of tariff actions is a powerful negative factor in growth," he said.
Others showed a more positive tone, with acting German finance minister Joerg Kukies saying he did not think that European-US relations were "close to a crisis moment." He added that trust between the two parties needs to happen more.
Trump's attitude toward the Russian-Ukrainian war also made European feathers crumpled around the issue of Ukraine's financing and aid in the U.S. support for Ukraine.
Karas told CNBC that the EU and its members “are more supportive to Ukraine than anyone else” while acknowledging that the United States also contributed a “large share.”
She said: "If they no longer support Ukraine, it will be getting harder. But is the question targeting Europe? Can we do it? I think currency means we can do it... Of course, the question about certain military capabilities is of course much harder.
Trump initially said he would end the war in one day, but has since answered the comments. Although his administration did quickly start dialogue on the ceasefire agreement, there was limited progress.
Karas said on Monday that more pressure needs to be put on Russia to push the country to want peace.