> whereas in EU you can often buy things with a heavy discount at the airport.

I've browsed the tax-free shops in European airports, it's... disappointing. They will bump up the price from retail anyway because people assume it's a good deal, and they'll focus on premium / luxury goods one wouldn't normally buy.

I mean at the same time, you wouldn't find said premium / luxury goods on the high street either, nor an enthusiastic salesperson having you try fancy whiskeys at nine in the morning, so that's a plus on these tax free shops, lol.

Granted it's a somewhat of an edge case because of the state monopoly, but at least alcohol is 20-40% cheaper at the airport in FIN airports

UK duty free (pre COVID) also seemed to be slightly better priced in contrast to high street

I think they are sold without the duty (the sin tax), but still with VAT for an EU flight. Then add on the cost to run a shop in an expensive location.

Comparing a basic Gordens gin, at Copenhagen Airport it's 6DKK (€0.80) less than at a typical supermarket, 165 vs 171DKK/litre. However, the price in Sweden is about 260DKK/litre, and I assume the target market in that airport is Swedes.

It's even worse: many of the alcohol products for sale at duty free are exclusive to duty free, thus preventing any price comparison. They market this as an advantage (get a whisky you can't get anywhere else!) but at least in the world of Scotch, they're mostly no-age-statement "luxury" whiskies with far more brand than substance.

Why are European goods so enormously expensive compared to US ones?

VAT. The answer is VAT.

I find absolute US and EU (FIN) prices to be quite on par in categories like groceries, restaurant, alcohol etc.

Of course US has something like triple salary in tech at least, making their purchase power generally much better.

VAT ranges from 0 to 20%. It is significant, but not enormous.