WASHINGTON — The European Commission kept the heat on the U.S. Wednesday, with a report that called U.S. steel exclusions "manifestly insufficient" in advance of a critical recommendation on whether to slap retaliatory sanctions on U.S. goods, including apparel.

EU Trade Commissioner Pascal Lamy will base his recommendation to the EU Council of Ministers Friday on this report, which could set the stage for retaliatory sanctions on over $300 million in U.S. goods. A final decision is slated to be made on July 22.

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