U.S. objections to VAT, which applies in 170-plus countries, are hard to address. Brussels says it is similar to U.S. sales tax and not a tariff. Moreover, taxes are set by individual member states and so cannot be negotiated by the Commission.

U.S. President Donald Trump's sweeping tariffs on steel and aluminum imports went into effect Wednesday, attracting retaliatory measures from Europe.

Italian Premier Giorgia Meloni on Tuesday called for “pragmatism” to prevent an EU-US dispute over tariffs from escalating into a full-scale trade war, and expressed support for U.S. President Donald Trump’s efforts for a ceasefire in Ukraine.