Retailers warn of £3bn tariff hit if no deal on Brexit

The warning came as Boris Johnson warned that there was a “strong possibility” that a trade deal between the UK and EU will not be agreed as the country prepares to cut ties with Europe at the end of the year. 

Unless a deal is reached, the average food tariff would be approximately 20% and food retailers would face little choice other than to pass on higher costs to customers.

The BRC said under a new tariff schedule, which will come into force on January 1 in the event that there is no deal, tariffs of more than 5% would apply to 85% of food sourced from the EU, rising to as high as 48% for beef mince.

Non-food items would also face tariffs – in the case of blouses, for instance, it would be 12%.

The BRC cautioned that an agreement is needed to reduce checks and delays on imported goods, which are already being affected by delays at ports caused by the pandemic as well as Brexit stockpiling.

BRC director of food and sustainability Andrew Opie said: “With just weeks to go, it is alarming that there has still been no deal agreed with the EU, putting customers in line for a £3bn tariff bombshell. 

“Furthermore, retailers will need time to implement the aspects of any deal, and the ongoing uncertainty surrounding the new checks and red tape that will apply from January 1 will create disruption in the supply of many goods.

“Retailers have spent huge amounts of time and money preparing ahead of 1st January – increasing the stock of tins, toilet rolls and other longer life products as part of their planning for a no-deal Brexit, so there will be sufficient supply of essential products. 

“No amount of preparation can entirely prevent disruption to food and other essential goods that come from or through the EU. With negotiations entering the eleventh hour, protecting UK and EU consumers from billions in tariffs must be the top priority.”