Introduction to Tariff Dodgers
Wealthy American buyers are taking drastic measures to avoid the effects of President Trump’s tariffs. They are traveling across the Atlantic to Europe to purchase luxury goods, thereby avoiding the increased prices that result from American taxes on these items.
The Rise of Tariff Dodgers
In recent weeks, there has been a significant increase in the number of American buyers traveling to Europe to purchase luxury goods. According to CNBC, this trend is becoming more popular as consumers seek to avoid the higher prices caused by the tariffs. Travel destinations such as Milan, Paris, and Madrid are experiencing an influx of American buyers looking for clothing, accessories, and other luxury items.
Popular Destinations for Tariff Dodgers
These cities are located in countries that are part of the European Union, which has been subject to a 15% levy on high-end goods such as perfumes and luxury cars. Jack Ezon, a travel administrator, reported that trips to these destinations have increased by 48% compared to the previous summer season. Ezon’s clients are taking advantage of the lower prices in Europe to purchase luxury goods.
Switzerland: A Haven for Watch Buyers
Switzerland, a non-EU country, has also seen an increase in American buyers. The country has been hit with a 39% tariff in the US, making it one of the highest in the country. As a result, American consumers are traveling to Switzerland to purchase luxury watches, such as the Patek Philippe Nautilus, to avoid the additional tariff fees. Erica Jackowitz, a travel consultant, reported that one of her clients is planning a ski trip to Switzerland and intends to buy a watch while abroad.
The Impact of Tariffs on Luxury Goods
The tariffs have not only led to an increase in American buyers traveling to Europe but have also caused some companies to stop exporting their products to the US. A prominent independent watchmaker recently announced that it would no longer sell its products in the US, citing the tariffs as the reason. Instead, the company is confident that its customers will travel to Europe to purchase its products.
The Risks of Tariff Dodging
While traveling to Europe to purchase luxury goods may seem like a good way to avoid the tariffs, it is not without risks. American buyers are required to declare all items purchased abroad, and they may still be subject to tariffs when they return to the US. However, the lower prices in Europe, combined with the reimbursement of VAT (value-added tax), can still result in significant savings for consumers. Despite the risks, many American buyers are willing to take the chance to avoid the higher prices caused by the tariffs.
