Wealthy travel to Europe to dodge tariffs on luxury goods

Jamie and her husband are traveling to Switzerland in December for a ski vacation. But hitting the slopes isn’t the only motivator: The couple say they are also trying to sidestep steep U.S. tariffs on Swiss goods.

They intend to buy a luxury watch — a Patek Philippe Nautilus — from the watchmaker in Geneva, Jamie said, as a present for her husband’s birthday.

Their budget for the watch: $50,000 to $75,000.

If successful, buying abroad may save them many thousands of dollars relative to purchasing an imported Swiss timepiece. The Trump administration on Aug. 7 imposed a 39% tariff on Switzerland, among the highest rates in the world.

The couple say they had been thinking of a ski getaway in the Swiss mountains for some time. But the possibility of scoring a Patek watch at a hefty tax discount “was a motivator and added bonus,” said Jamie, a 42-year-old New Yorker. (She asked to use only her first name for privacy reasons.)

Interest among the affluent to travel for tariff-busting shopping sprees has spiked in recent weeks, said Erica Jackowitz, a travel advisor to wealthy clientele.

Switzerland — which is home to other high-end watchmakers like Rolex, Piaget and Audemars Piguet — is the top destination, she said.

Other European nations like France and Italy, where renowned fashion brands like Hermès and Prada are based, have also emerged as hot spots, Jackowitz said.

The European Union faces a 15% U.S. tariff on most goods. That levy also took effect in August. (Switzerland is not part of the EU.)

The specter of European tariffs has persisted since April, when President Donald Trump initially announced “reciprocal” tariffs on the EU and Switzerland (among more than 100 other countries) before delaying them.

Many people travel to take advantage of favorable exchange rates, for example. And many Americans booked trips to Europe for Taylor Swift concerts in 2024, finding it more cost-effective to pay for airfare, hotel rooms and concert tickets abroad than to see the artist at home.

“That really set off people’s mindsets that you can get things at better prices in different places,” said Jack Ezon, a luxury travel advisor based in New York.

He’s seen the share of shopping-centric trips among his clientele jump 48% this summer relative to 2024.

Italy, Milan, Paris and Madrid have been the top destinations, said Ezon, founder and managing partner of Embark Beyond. Fashion and watches are the top draws, he said.

“Every dollar counts when you’re getting these kinds of tariffs,” Ezon said.

Take the example of an imported Rolex as an illustration of potential cost savings, according to an analysis by FlavorCloud, a cross-border logistics firm.

A Rolex Lady-Datejust watch in Oystersteel and Everose gold retails for $11,300, before taxes. After tariffs, the same watch is estimated to cost about $15,700 — or $4,400 more, according to the FlavorCloud analysis.

The analysis assumes the tariff cost is passed to the end consumer. Many economists believe companies will pass on at least some of the cost.

Rolex spokesperson Virginie de Meuron declined to comment.

The price tag for luxury Swiss watches can sometimes swell to $500,000 or more — in which case the potential tariff savings can be huge, Jackowitz said.

Any ultimate savings may depend on factors like an item’s country of origin and duties that may have already applied before reciprocal tariffs took effect, trade experts said.

Travelers must declare any items they acquire abroad and bring back to the U.S., according to U.S. Customs and Border Protection.

In other words, travelers aren’t supposed to keep their purchases a secret — at which point that Swiss watch or French handbag could be hit with tariffs. Total duties would depend on factors like where a particular good was acquired and manufactured, and what it’s made of.

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While there are exemptions from customs duties in certain cases, especially for lower-value items, high-priced luxury goods would likely be treated exactly the same as if shipped: subject to all normal import costs including duty, tax, tariffs and fees, according to trade…