Counterpoint: I came home with a 1L bottle of Sipsmith gin for like $20 thanks to the combination of duty free and post-Brexit GBP crash.

You should have looked at the cigarettes.

I guess duty-free stores were a thing decades ago when international trade was actually constrained by duties. Right now free trade is the default (or was, until Trump)

Many countries apply VAT for products bought in their domain, but they also have thresholds for products bought overseas and taken into the country by their residents who were travelling (otherwise I imagine even a bracelet bought at a beach in Bali would have to be declared and taxed, and there'd be long queues at customs). For things like cigarettes and alcohol they have a quantity limit, beyond which taxes do apply.

A Rolex certainly goes beyond the threshold in many countries, but maybe the thought is the buyer might be willing to risk "smuggling" it in.

Alcohol duties are still a thing in some countries.

Just went through travel that had special duty-free exception. Alcohol against expensive alcohol taxes was cheaper. But stuff like candy was more expensive. Even without horrendous 25.5% VAT or other possible taxes...

Makes you really think where have these prices gone.