Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UK companies would incur tariff costs after no-deal Brexit - survey

Published 18/09/2019, 00:11
Updated 18/09/2019, 00:11
© Reuters. The full moon is seen rising behind skyscrapers at Canary Wharf and the London skyline, London, Britain

© Reuters. The full moon is seen rising behind skyscrapers at Canary Wharf and the London skyline, London, Britain

LONDON (Reuters) - Almost 40% of British businesses with suppliers in the European Union have signed "Brexit clauses" to allow prices or other terms to be renegotiated if trade tariffs return after a no-deal departure from the bloc, a survey showed on Wednesday.

The Chartered Institute of Procurement & Supply (CIPS) said the survey of 817 supply chain managers in Britain and the EU showed that British firms would incur the cost of any tariffs when buying parts from the bloc, potentially pushing up prices.

"These potential additional costs are being written into contracts ahead of time," CIPS economist John Glen said. "Where this would be particularly damaging is SMEs (small and medium-sized enterprises) who are not flush with cash."

British companies are struggling to prepare for Britain's departure from the EU - the country's biggest trade upheaval in half a century - due to extreme levels of political uncertainty.

Prime Minister Boris Johnson has vowed to take Britain out of the world's biggest trading bloc by Oct. 31 with or without a deal, but opposition lawmakers are trying to force another delay.

© Reuters. The full moon is seen rising behind skyscrapers at Canary Wharf and the London skyline, London, Britain

The survey, which monitors businesses in sectors including aerospace, construction, food and medical, also found only 22% of respondents among British firms with EU suppliers believed they had completed the paperwork to trade outside the bloc.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.