A MARTÍNEZ, HOST:
What could President Trump's tariffs mean for duty-free shopping, like the kind found at international airports?
SCOTT LAIRD: So duty-free shopping basically is an exemption of import duties and taxes.
LEILA FADEL, HOST:
Scott Laird is a freelance travel writer. He's written about tariffs and duty-free shopping for Fodor's.
LAIRD: Because the notion is that if you are immediately leaving the country and not using the products that you're buying in that country - that you shouldn't be subject to import duties or local taxes when you purchase those items.
MARTÍNEZ: Laird says right now at an airport duty-free shop, you show a boarding pass for international travel, and when you purchase your items, you get them without duties or taxes.
LAIRD: In many cases, there can be substantial savings, particularly on items that even before the tariffs were introduced had existing tariffs on them that made them more expensive in the United States. And those are typically luxury items, like imported wines, cosmetics and tobacco.
FADEL: Duty-free shopping isn't just for people who can afford expensive international flights. They're also available at land border crossings.
LAIRD: Americans who live near our border with Canada and Mexico can also benefit 'cause there are typically duty-free shops right around the border checkpoints with those countries as well.
MARTÍNEZ: So could duty-free shopping be an option for consumers trying to avoid import taxes?
SIMON JOHNSON: No, not in a large way.
FADEL: MIT professor Simon Johnson is a former chief economist at the International Monetary Fund and joint winner of the 2024 Nobel Prize in economics.
JOHNSON: If you take a trip to Canada, and the Canadians are willing to sell you something that's free of Canadian taxes at the border, then the issue is - how does U.S. customs view what you're bringing back in the trunk of your car or if you have a trailer or a truck?
MARTÍNEZ: Johnson doesn't expect significant crackdowns on small amounts of goods.
JOHNSON: But it would really surprise me. And it would go counter to the spirit and the letter of what Mr. Trump is putting forward if they were to allow significant amounts of imports in that way.
FADEL: U.S. travelers are allowed to return with $800 worth of goods or gifts duty-free, but Laird cautions...
LAIRD: You absolutely need to declare anything that you are bringing back into the country because if you don't, it can have implications on your future international travel. It can result in longer waits at customs because, you know, customs can't trust you anymore.
FADEL: You hear that? Don't even try to fill your car with duty-free chocolates, A.
MARTÍNEZ: Ah, foiled again.
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