Britain’s retail warns of higher prices without EU trade deal

Britain’s retail industry encouraged UK and EU negotiators to arrive at a post-Brexit trade deal. This came after the retail industry stated that consumers will endure higher prices from next year if a tariff-free trade is not guaranteed.

Thousands of jobs have been lost in the retail industry as shoppers avoided the high street due to the coronavirus pandemic.

Britain left the EU in January and is in a transition period to allow both sides to form agreements on trade and security.

Last week’s negotiations were cut short as both sides said while they wanted an agreement, they are yet to come to terms with differing views. This could leave Britain without a deal once the transition period ends.

The UK imports about four-fifths of its food imports from the EU, as well as fashion, homeware, and other retail sectors.

In May, the British government released its new tariff schedule, marking the average tariff on food imports from the EU more than 20%.

The British Retail Consortium said that the industry could not shoulder all tariff costs, which means that consumers will face higher prices.