In December, a New York couple told CNBC they are planning a unique vacation in Switzerland. After hitting the slopes and taking in the sights, they're going luxury watch shopping.
The watch they're planning to purchase, a Patek Philippe Nautilus, has a high price tag, and the U.S.'s steep tariffs on Swiss-made goods would make purchasing it domestically even pricier.
"The ability to be able to get the watch that we want at a significant discount to what it'd cost us in the U.S., and have the experience of the trip and the day of getting the watch — the combination of those things is what pushed us over the edge," one of the New Yorkers told the outlet. "I imagine it'll be a lot of fun."
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The pair aren't the only Americans looking to overseas travel as a way to save a buck or two on their luxury goods.
Erica Jackowitz, co-founder of Roman & Erica Inc., a luxury travel agency, told CNBC that she's seen an uptick in interest in tariff-busting shopping travel in recent months. Switzerland, with a 39% tariff on imported goods, and countries in the European Union, which face a 15% tariff on most goods, are among the most popular destinations.
Another luxury travel consultant, Jack Ezon, founder and managing partner of Embark Beyond, said that he's seen shopping-centric trips increase by 48% when compared to 2024.
"Every dollar counts when you're getting these kinds of tariffs," he said.
Of course, these overseas shopping trips could wind up backfiring. According to U.S. Customs and Border Protection, travelers are required to declare items they have purchased while traveling abroad. At that point, the goods could still be hit with tariffs.
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There are some exemptions for certain goods, especially those below a certain cost threshold, but luxury goods like Swiss watches or Italian leather handbags are usually not among them.
"A $4,000 handbag, a $10,000 watch, you will have taxes you need to pay and they will be assessed at the border based on the declaration," global logistics platform FlavorCloud founder and CEO Rathna Sharad told CNBC. "There is no way around that."
Travel agents like Jackowitz and Ezon are aware of these rules and caution their clients to declare all purchases lest they face major consequences like fines or forfeiture of the items. However, they say customs agents have some leeway when it comes to enforcing the tariffs, and that can be used to travelers' advantage.
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Even if shoppers are hit with tariffs upon their return, there can still be benefits to buying luxury goods abroad.
For starters, Ezon says the base rate for most merchandise is cheaper overseas than it is in the U.S.
On top of that, travelers can get value-added tax refunds, which can be upwards of 15%. These VAT refunds can save shoppers money in two ways, according to Sharad. The refund acts as an initial discount and reduces any customs-related taxes, as the tax would be determined on the lower declared value.
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