Visitors and salesmen stand at the booth of Swiss luxury watchmakers during the “Watches and Wonderful Geneva” luxury watch fair on April 1, 2025.
Fabriscofini | AFP | Getty Images
Jamie and her husband are traveling to Switzerland for a ski holiday in December. But hitting the slopes is not just the only motivation. The couple says they are trying to avoid sudden US tariffs on Swiss goods.
They are planning to buy a gorgeous watch (Patek Philippe Nautilus) from a Geneva watchmaker as a birthday present for her husband, Jamie said.
Watch budget: $50,000 to $75,000.
If successful, buying abroad can save thousands of dollars compared to purchasing an imported Swiss watch. On August 7, the Trump administration imposed a 39% tariff on Switzerland, among the highest fees in the world.
The couple says they have been considering a ski vacation in the Swiss mountains for a while. But Jamie, a 42-year-old New Yorker, said: (She asked to use only her name for privacy reasons.)
Travel advisor to wealthy clients, Erica Jacowitz said travel among wealthy people to travel to fill tariffs has skyrocketed in recent weeks.
Switzerland is home to other high-end watchmakers like Rolex, Piaget and Ardmer’s Piga – the top destination, she said.
Other European countries such as France and Italy, where famous fashion brands like Hermès and Prada are based, have also emerged as hot spots, Jackowitz said.
The European Union faces US 15% tariffs on most goods. The levy was also effective in August. (Switzerland is not part of the EU.)
European tariff adopters have been ongoing since April, when President Donald Trump first announced “mutual” tariffs.
“All dollars will be counted.”
Christian Dior Luxury Store in Paris on July 22, 2025.
Cyril Marcilhacy/Bloomberg via Getty Images
Tariffs add new wrinkles to worn-out concepts.
For example, many people travel to take advantage of the preferred exchange rate. And many Americans booked a trip to Europe in 2024 for the Taylor Swift concert. I felt that paying for international airfares, hotel rooms and concert tickets was more cost-effective than seeing artists at home.
“We’re looking forward to seeing you in the world,” said Jack Eson, a luxury travel advisor based in New York.
He jumped 48% in the market share of shopping-centric travel among his customers this summer compared to 2024.
Italy, Milan, Paris and Madrid are top destinations, said Ezon, founder and managing partner of Embark Beyond. Fashion and watches are the biggest draw, he said.
“When you receive these types of tariffs, all dollars will be counted,” Aison said.
Consider the imported Rolex example as an example of potential cost savings, according to an analysis by FlaverCloud, a cross-border logistics company.
Oystersteel and Everose Gold’s Rolex Lady-Datejust Watch retails for $11,300 before tax. Flovercloud analysis estimates that the same watch will cost around $15,700, or an additional $4,400 after customs duties.
The analysis assumes that customs fees will be passed on to the final consumer. Many economists believe that companies will take over at least some costs.
Rolex spokesman Virginie de Meuron declined to comment.
The price tag of a gorgeous Swiss watch can swell to more than $500,000.
The ultimate savings could depend on factors such as the country and duties of the country of origin that may have already been applied before each other’s tariffs came into effect, trade experts said.
“There’s no way around that.”
(Ceral Gnes/Anadoru via Getty Images)
Of course, Gambit can backfire.
According to US Customs and Border Protection, travelers must declare items acquired overseas and take them back to the US.
In other words, travelers are not supposed to keep their purchases secret. At that point, Swiss surveillance and French handbags could be hit by tariffs. The total obligation depends on factors such as where a particular good was acquired and manufactured and how it is made.
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According to trade experts, expensive luxury items can be treated exactly the same, especially for low value items, especially for low value items, especially for low value items.
“There’s a $4,000 handbag, a $10,000 watch, a tax you need to pay and it will be evaluated at the border based on the declaration,” said Rathna Sharad, co-founder and CEO of FlaverCloud.
“There’s no way around that,” she said.
Someone passing by the Patek Philippe boutique at Rhone Rue in Geneva, Switzerland on August 2, 2025.
Robert Fradil | Getty Images News | Getty Images
Travel advisors Aison and Jack Witz say they know this potential snaff and will tell travelers they should declare their purchase. Failure to do so could put penalties at risk, such as fines, confiscation of items, and loss of membership in the Global Entry Program from US Customs and Border Protection.
However, customs agents have some discretion, whether or not they collect customs duties, trade experts said. From a practical standpoint, they said it would also be difficult for agents to check whether the clothing and jewelry worn by travelers are in fact a new purchase abroad.
According to a spokesman for the US Customs and Border Patrol, each traveler has received a personal exemption. The exemption is $1,600 from the Virgin Islands, Samoa and Guam in the US.
A CBP spokesman said families traveling with could combine these exemptions. They say that the obligations of watches and other items are calculated based on a harmonized tariff schedule, taking into account components such as movements, cases, straps and more.
Value to buy overseas
Travel agents and customs experts say there are still benefits to buying European luxury goods overseas, even if they are slapped at customs duties when re-entering the US
Mainly because of refunds that allow American travelers to qualify for VAT in this area.
Results for travelers: That VAT refund is huge, often over 15%.
According to Sharad, getting a VAT refund will give you double benefits. Americans will receive a discount courtesy of the refund and cut customs-related tax bills (as taxes are of low declared value).
Furthermore, Eson said the base rates for products are often cheaper overseas.
The artisan works at the Montex workshop on the Chanel SA 19M campus in Obervilliels, France on January 20, 2022.
Benjamin Gillette/Bloomberg via Getty Images
Travelers should be aware that there are specific steps to request a VAT refund, experts said.
For example, retailers usually need to provide a refund form at the point of sale to travelers who need their passports to be convenient. The traveler will then need to process the refund. These designated processing services are generally available at airports upon departure, experts said.
From a financial standpoint, the potential savings should outweigh the overall cost of travel to justify it, whether it’s VAT or tariffs.
However, the travel advisor also plans shopping experience.
For example, Jackowitz has compiled a trip to Paris for its clients with a shopping focus and a visit to Lagarelli Dior in iterations.
For New York couples traveling to Geneva, getting bookings at Patek Philippe to try out different watches along with their ski vacation was part of the appeal.
“The combination of these things pushed us to the edge,” said Jamie, “we cost us in the US, and the ability to get travel experience and watches that we want to get a huge discount on the day we get our watches,” he said.
“I think it’s a lot of fun.”
