To avoid the ramifications of President Trump’s tariffs, affluent American shoppers are heading across the pond.
U.S. consumers are traveling to Europe to avoid prices increases, resulting from American levies, on luxury goods across the continent. In the past few weeks, more and more shoppers have shown interest in participating in the practice, CNBC reported.
There are a few places in particular that have caught the eye of consumers who are on the hunt for clothes and accessories. Milan, Paris, and Madrid are all considered top locales for shopping, Jack Ezon of travel company Embark Beyond told CNBC. The trio is located in countries that make up part of the European Union, which was hit with a 15 percent levy that began in August—covering everything from high-end perfumes to luxury cars. With Ezon’s clients, trips focused on all things shopping have increase by 48 percent this summer, compared to the same time last year, he said.
Switzerland, too, has seen a spike in American shoppers, according to travel advisor Erica Jackowitz. The nation—which is not a member of the E.U.—was hit with a 39 percent tariff from the U.S., a steep levy that’s one of the highest doled out by the United States. In addition to putting the Swiss watch industry into crisis mode, the new tariff has also made American consumers head to the Land of Milk and Honey to grab a timepiece or two. One client of Jackowitz’s has planned a ski trip to Switzerland this winter and plans to purchase a Patek Philippe Nautilus while they’re abroad, hoping to avoid any extra tariff fees, CNBC reported.
Also, for some products, Americans have to travel abroad now to purchase them as tariffs have scared off some companies from exporting to the U.S. at all. One prominent independent watchmaker recently told Robb Report that it would stop selling in the U.S. because it is confident its clientele would come to them to purchase.
The levies, though, are not so easily skirted. Since travelers are expected to declare any items they acquire abroad to U.S. customs, they could face tariffs when they arrive back on American soil, according to CNBC. Though, luxury goods in Europe are often initially priced lower than they would be in the U.S., meaning consumers would be paying less even with any added levies. Also, thanks to help from the VAT (value-added tax) refund applied on items bought abroad, travelers can get reimbursed for part of their purchase—sometimes by more than 15 percent.
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