Almost all (if not all) government regulatory agencies like the FDA has as their primary goal “no blame shall ever be possible to ascribe to us bureaucrats”. If they don’t emergency waiver European food then they can’t be blamed if something were to go wrong with it.
And if babies die of malnutrition that’s not their fault and won’t affect their performance review.
They could solve the baby formula immediately by just allowing import of European baby formula. Sure, it’s not been vetted by FDA, but unless you believe French or German babies are malnourished en masse, this is scarcely a good reason to prevent import in time of shortage.