Dive Brief:

• As of May 1, the European Union will lower a 26% tariff on women’s jeans made in America to 0.35%, effectively ending it. The jeans will be reclassified as “women’s pants” and taxed at only 12.35%.

• The tariff had been in retaliation to sanctions by the World Trade Organization in response to U.S. anti-dumping protections against foreign goods.

• American jean manufacturers may be able to collect refunds, according to the law firm Sandler, Travis & Rosenberg, which has been seeking relief on their behalf.

Dive Insight:

This tariff was a steep one, and the end of it is good news for U.S. jeans makers and for the retailers who sell them. (75% of jeans in mid-to-upscale markets are made in California.) Price pressures remain a problem for apparel retailers. Any time costs fall this much, retail companies have more room to find price points that can help bring in customers without endangering the bottom line.