No-Deal Brexit Threatens UK Consumers’ Food Affordability

  • UK retailers and consumers could face £3bn in tariffs on food and drink if a free trade deal is not agreed by January 1st, 2020
  • 85% of EU-imported foods will face tariffs over 5% under the UK’s new schedule
  • Beef mince could see a 48% increase in tariff, cucumbers 16%, and cheddar cheese 57%
  • BRC calls for zero-tariff, zero-quota trade deal between UK and EU to avoid higher prices for consumers
  • Coronavirus already affecting consumer affordability; a no-deal Brexit could worsen the situation

The British Retail Consortium (BRC) has warned that supermarkets and customers may face a £3bn annual tariff on food and drink imports from the EU if a trade deal is not agreed by January 1st, 2020. The BRC’s report states that an average 20% increase in tariffs would force retailers to raise prices on food items to cover costs. Non-food retailers will also face significant tariff bills for EU-sourced products. The UK government’s new tariff schedule, effective from January 1st, 2021, includes 48% on beef mince, 16% on cucumbers, and 57% on cheddar cheese. BRC has long advocated for a zero-tariff, zero-quota trade deal with the EU. With the pandemic affecting consumer livelihoods, higher food prices would further strain lower-income households. The BRC’s Andrew Opie urges swift negotiation to protect consumers, retailers, and the economy.

Factuality Level: 8
Factuality Justification: The article provides accurate information about potential tariffs on food and drink if a free trade deal is not agreed between the UK and EU by January 1st, 2020. It cites specific examples of increased tariffs on certain products and quotes an expert from the British Retail Consortium (BRC) who calls for a zero-tariff deal to prevent harm to shoppers, retailers, and the economy.
Noise Level: 3
Noise Justification: The article provides relevant information about potential tariffs on food and drink if a free trade deal is not agreed between the UK and EU by January 1st, 2020. It also includes quotes from an expert in the field to support its claims. However, it does not explore long-term trends or possibilities, hold powerful people accountable, provide actionable insights, or offer new knowledge that the reader can apply.
Financial Relevance: Yes
Financial Markets Impacted: Retail industry, food and drink companies
Financial Rating Justification: The article discusses potential tariffs on imported goods from the EU to the UK which could impact the retail industry and lead to higher prices for consumers. This has financial implications for both companies and consumers.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, but it discusses potential economic consequences of a no-deal Brexit on supermarkets and consumers.

Reported publicly: www.retailsector.co.uk