Luxury shopping has always been an indulgence for the affluent, but in 2025, it has taken on a new dimension: tariff avoidance. With steep US tariffs imposed on European luxury goods, wealthy Americans are finding creative ways to merge lifestyle with financial strategy. Instead of simply buying their favorite timepiece or handbag domestically, many are jetting off to Europe—turning shopping into a tax-optimized experience.
This emerging trend highlights how global trade policies ripple through everyday consumer choices, especially among the upper class. For some, it’s no longer just about skiing in Switzerland or strolling through Parisian boutiques—it’s about securing a $50,000 Patek Philippe or $10,000 Rolex while saving thousands in tariff costs. In the process, tariff-driven luxury tourism is transforming how affluent Americans view travel, shopping, and even financial planning.
The Case of the Swiss Ski Trip and the $75,000 Watch
Consider Jamie, a New Yorker planning a December ski trip to Switzerland with her husband. While the slopes are part of the appeal, the true prize is a Patek Philippe Nautilus. By purchasing directly from Geneva, the couple hopes to bypass the 39% tariff on Swiss luxury goods recently imposed by the US government. Their budget? Between $50,000 and $75,000—with potential tariff savings in the tens of thousands.
For them, the trip isn’t just a vacation; it’s a calculated financial maneuver. Luxury advisors report that this behavior is becoming increasingly common among wealthy Americans looking to combine lifestyle travel with strategic shopping.
Tariffs and the Luxury Equation
The Trump administration’s August tariff package included a 39% levy on Swiss imports, one of the highest worldwide. Meanwhile, EU goods—including iconic French and Italian fashion houses like Hermès, Prada, and Dior—now face a 15% tariff. For luxury shoppers, these percentages translate into staggering differences:
- A Rolex Lady-Datejust retailing at $11,300 before taxes could cost nearly $15,700 after tariffs in the US.
- For ultra-high-end pieces worth $250,000 or more, savings on tariffs alone can reach six figures.
This has shifted the psychology of high-net-worth shoppers. Suddenly, a shopping trip abroad isn’t just about access to limited editions or unique experiences—it’s also about financial efficiency.
Travel Advisors Report a Spike in “Shopping Tourism”
Luxury travel planners confirm the surge. Erica Jackowitz, a travel advisor for high-net-worth clients, reports Switzerland, France, and Italy are now top destinations for tariff-conscious trips. Similarly, Jack Ezon of Embark Beyond has observed a 48% jump in shopping-centric travel this year compared to 2024.
Destinations like Paris, Milan, Geneva, and Madrid are thriving not only because of cultural appeal but also because they house the world’s most coveted luxury brands—Rolex, Patek Philippe, Hermès, Prada, Chanel, and more. Tariff hikes have inadvertently turned these cities into financial havens for affluent Americans.
Customs, VAT, and the Fine Print
Of course, the strategy comes with complications. US Customs and Border Protection requires travelers to declare all luxury purchases upon reentry. Items like a $10,000 watch or a $4,000 handbag are subject to the same duties, tariffs, and fees as if imported directly.
- Duty-Free Allowances: Each traveler receives an $800 exemption, or $1,600 if returning from US territories like Guam or the Virgin Islands. Families traveling together can combine exemptions.
- Risk of Non-Declaration: Failure to declare can result in fines, forfeiture of goods, and even losing privileges like Global Entry.
Yet, there are financial offsets too. Most European countries offer Value-Added Tax (VAT) refunds, which can be 15% or more. For US travelers, this refund softens the tariff blow and sometimes tips the balance in favor of buying abroad.
Example: A handbag bought in Paris might receive a 15% VAT refund, which not only reduces the effective price but also lowers the declared value for US customs calculations.
The Experience Economy: More Than Just Savings
Financial strategy is only part of the allure. For many affluent travelers, the experience of purchasing luxury goods at their origin adds intangible value.
- Swiss Watchmaking Houses: Appointments at Patek Philippe or Rolex boutiques in Geneva are curated experiences involving private showrooms and exclusive editions.
- Fashion Capitals: Trips to Paris or Milan often include private fittings at Dior or Prada, blending exclusivity with artistry.
- Bundled Itineraries: Advisors now package shopping trips with cultural or lifestyle elements, such as touring La Galerie Dior or attending private fashion previews.
This creates what some call “experiential arbitrage”—where the purchase is as much about the story and journey as it is about financial savings.
Risks of Over-Optimizing for Tariff Savings
Still, the plan can backfire. Customs officers have discretion in applying duties, and determining whether a piece of jewelry or clothing is “new” is not always straightforward. Trade experts stress that there is “no guaranteed way around tariffs.”
Moreover, while the wealthy may absorb the risk of fines or additional costs, the strategy is less accessible for middle-class consumers. A $15,000 watch might justify a European trip, but a $2,000 handbag rarely does once airfare and accommodations are considered.
Global Trends in Luxury and Policy Implications
This phenomenon underscores a broader trend: globalization has blurred the lines between consumption, finance, and policy. Tariffs, once viewed as abstract economic levers, now shape where individuals vacation and shop.
It also raises questions:
- Will European luxury brands adjust strategies to attract more American shoppers abroad?
- Could the US government intensify enforcement at customs to deter tariff-avoidance travel?
- Might affluent Americans increasingly rely on concierge shopping services abroad, avoiding personal travel altogether?
These dynamics highlight the unintended consequences of trade policy when applied to lifestyle-driven sectors like luxury goods.
The Bigger Picture: Luxury as a Financial Strategy
The trend of wealthy Americans flying to Europe for tariff-driven shopping isn’t just about watches or handbags—it’s about how the affluent weave financial strategy into lifestyle decisions. For some, buying a $75,000 watch in Geneva instead of New York is as much about wealth preservation as personal indulgence.
Luxury consumption has always been tied to status and exclusivity, but now it also intersects with arbitrage opportunities created by policy shifts. In a world where every percentage point matters, affluent consumers are increasingly acting like investors, seeking returns in the form of tariff savings and VAT refunds.
Luxury, Lifestyle, and Loopholes
The resurgence of shopping tourism shows how quickly global trade policy can reshape consumer behavior. For affluent Americans, Europe is no longer just a destination for culture and leisure—it’s a financial strategy against tariffs. Switzerland, Paris, Milan, and Madrid have become shopping battlegrounds where luxury meets policy loopholes.
While customs regulations may ultimately limit the scale of this phenomenon, the narrative is clear: tariffs are driving a new wave of experiential luxury travel. The rich aren’t just skiing in the Alps or sipping champagne in Paris—they’re recalibrating their financial decisions with every handbag, watch, or couture piece they buy abroad.
In the end, what looks like extravagance is often a carefully calculated choice. As tariffs reshape global commerce, luxury travel itself may increasingly be seen not just as indulgence—but as a strategic hedge against policy.
Reference : Greg Iacurci