American companies pay VAT in Europe. European companies pay VAT in Europe.
American companies do not pay VAT in in the US. European companies do not pay VAT in the US.
American companies pay sales tax in the US. European companies pay sales tax in the US.
US sales tax is *significantly* lower than VAT, varies by state (allowing for all kinds of loopholes), and applies to fewer categories of products and services sold. No point arguing this, VAT is a protectionist and anti-competitive tax and the US has a right to challenge it.
Why are you arguing this point? It’s de-facto cheaper and easier for European companies to compete in the American markets, than the other way around.