Your Money Minute — "Travelers Wear Purchases Home To Try To Avoid Tariffs" (October 3, 2025)

Host: Jessica Ettinger
Guest: Greg Iaci, CNBC Personal Finance Reporter
Duration: ~1:31 (content ends before ads at 1:31)

Main Theme

In this concise episode of CNBC’s "Your Money Minute," Jessica Ettinger explores how American travelers — including the wealthy — are trying to evade hefty U.S. tariffs on luxury goods by wearing these items when re-entering the country. Greg Iaci reports from Switzerland on strategies, risks, and how customs are keeping up with these tactics.

Key Discussion Points & Insights

1. Travelers Engaging in Risky Behavior to Dodge Tariffs

• Overview
  Jessica Ettinger introduces the trend of Americans, even affluent ones, finding creative — and risky — ways to avoid paying high tariffs on luxury purchases made overseas.
  • Quote (00:02): “Some Americans, even wealthy Americans, are engaging in risky travel to avoid paying tariffs.” — Jessica Ettinger

2. How the Scheme Works

• Luxury Purchases Abroad
  Greg Iaci (reporting from Switzerland) explains that U.S. travelers buy high-end goods, particularly watches and clothing, in countries like Switzerland and Europe with the intention of avoiding the added costs from U.S. tariffs when they bring these items home.

  • Quote (00:11): "Travelers are basically going abroad buying luxury goods like watches and clothing over in Europe and Switzerland, especially with the hope of skirting these tariffs." — Greg Iaci

• Tariff Amounts
  The tariffs on luxury watches can be substantial.

  • Quote (00:24): “For example, your luxury watch, Patek Philippe or a Rolex could have an extra 39% cost tacked onto the price tag.” — Greg Iaci

3. The Wear-Home Method

• Evasion Tactic
  Rather than carrying new goods in their luggage, travelers simply wear them on their person, hoping to pass unnoticed through Customs.

  • Quote (00:31): "That's a lot of money when the item you're buying costs tens of thousands of dollars. So how are they doing it? By wearing the item back…" — Jessica Ettinger

• Customs Declarations:
  Legally, all purchases abroad are supposed to be declared on re-entry and are subject to U.S. customs duties. However, physically wearing items is a gray area often left to the scrutiny of customs officials.

  • Quote (00:39): "…when a traveler comes back into the U.S., technically, by law, you're supposed to declare the item and it is supposed to have a U.S. customs duty attached to it. At that point in time… there’s nothing preventing you per se from wearing the watch back… and maybe the customs officer doesn’t see it." — Greg Iaci

4. Customs Countermeasures and Preemptive Advice

• Training to Spot Evasion:
  Agents are trained to identify new luxury items on passengers, sometimes even matching declared items to those worn.

  • Quote (01:00): “Customs and border control agents are trained to spot brand new watches, jewelry, and even clothing on incoming passengers. Some cross check what you've declared with what you're wearing.” — Jessica Ettinger

• Pre-Register Luxury Items Prior to Travel:
  Americans already owning expensive items (like watches) are advised to pre-register them before travel to avoid suspicion or being taxed on returning with their own goods.

  • Quote (01:10): “Americans who already own, say, a luxury watch are encouraged to pre register it before traveling so they're not accused of a foreign purchase when they come back…” — Jessica Ettinger

Memorable Quotes

• Jessica Ettinger (00:02): “Some Americans, even wealthy Americans, are engaging in risky travel to avoid paying tariffs.”
• Greg Iaci (00:11): "Travelers are basically going abroad buying luxury goods… with the hope of skirting these tariffs."
• Greg Iaci (00:24): “Your luxury watch, Patek Philippe or a Rolex could have an extra 39% cost tacked onto the price tag.”
• Jessica Ettinger (01:00): “Customs and border control agents are trained to spot brand new watches, jewelry, and even clothing on incoming passengers.”

Timestamps for Important Segments

• 00:02 — Introduction to tariff evasion by travelers (Jessica Ettinger)
• 00:11 — How and where travelers buy luxury goods abroad (Greg Iaci)
• 00:24 — Size of tariffs and potential extra costs (Greg Iaci)
• 00:31 — The “wear-home” tactic explained (Jessica Ettinger)
• 00:39 — What U.S. law says about customs declarations (Greg Iaci)
• 01:00 — Customs agents’ detection methods and pre-registration advice (Jessica Ettinger)

Tone & Language

The episode uses a crisp and informative tone, briskly delivering practical advice and newsworthy insights. Both Jessica Ettinger and Greg Iaci speak straightforwardly, with a focus on actionable information for travelers.

Conclusion

This episode provides a succinct, impactful look at the growing strategy of “wearing” foreign luxury goods through customs to avoid tariffs, with clear warning about legal risks and practical tips for travelers. For more details, listeners are directed to Greg Iaci’s full piece on the CNBC website.