July 03, 2020 1:29 PM

UK's post-Brexit trade tariffs to cause food prices to skyrocket

At a time when the UK is facing an enormous global Coronavirus recession and record levels of unemployment, everyone is worried about their future economic position. 

The new UK Global Tariffs, effective from 1st January, will replace the system we currently have via the EU and the Single Market. The new set of tariffs that importers will have to pay will drastically change the way food reaches our supermarket shelves.

The new UK Global Tariffs will contribute to a significant increase in the cost of essential food items and consumers will pay more for staple products.

Product

UK Global tariff

Increase per can

Current RSP of own-label item @ an indicative major UK retailer

% increase

Alternative sources?
(Best for Britain analysis)

Sweetcorn
326g

4% + £7.80/100kg

3.4p

50p

6.8%

Currently no country with an FTA with UK.

Tomatoes
400g

14%

4p

35p

11.4%

Currently no country with an FTA with UK.

Baked Beans

16%

4.2p

30p

7.1%

UK production is available but would not meet UK demand and would create a monopoly and reduce competition

Canned Peaches 400g

18%

7p

80p

8.75%

South Africa is only exporting country with an FTA with UK. Cannot meet UK demand. Any potential FTA with USA would not provide solution as freight costs would offset duty gain.

Dried Pasta
(500g Penne)

6% +
£20/100kg

12p

53p

22.6%

UK production is possible but is very small and could not volume requirements.

Evaporated Milk 400g

 £36/100kg

18p

65p

27.6%

No evaporated milk capacity exists in UK.

Source: UK Government guidance 'UK tariffs from 1 January 2021'

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