BRUSSELS (AP) — The European Union’s top diplomat is calling on Kosovo to lift tariffs on goods from Serbia and Bosnia-Herzegovina as tensions rise between the former Serbian territory, and the EU and NATO.

Kosovo last month slapped a 100-percent tax on Serbian imports, apparently in retaliation after its bid to join the international police organization, Interpol, failed amid intense Serb lobbying.

EU foreign policy chief Federica Mogherini said Tuesday that “it is in the interest of Kosovo to immediately revoke this decision.” She urged Pristina to settle its grievances through dialogue.

Mogherini’s remarks came as Kosovo’s prime minister accused her of mismanaging EU-backed talks on normalizing ties with Serbia.

NATO ambassadors, meanwhile, were weighing Tuesday Kosovo’s decision to transform its security force into an army.