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THREAD: Let's talk about cheese.
Cheese is a great example of how tariffs will affect UK consumers in the event of a no-deal Brexit.
In 2019, the UK produced 462,000 tonnes, imported 404,000 tonnes & exported 156,789 tonnes of cheese.
That's a shortfall of 247,211 tonnes.
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Cheese is a great example of how tariffs will affect UK consumers in the event of a no-deal Brexit.
In 2019, the UK produced 462,000 tonnes, imported 404,000 tonnes & exported 156,789 tonnes of cheese.
That's a shortfall of 247,211 tonnes.
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Keeping things simple, let's round up and say the UK needs to import 250,000 tonnes of cheese to satisfy everyone's cheesy needs. (That's IF we also eat ALL the cheese we produce domestically, and stop exporting any.)
We get over 99% of our imported cheese from the EU.
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We get over 99% of our imported cheese from the EU.
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The UK has various tariffs for cheese, depending on what kind of cheese we're talking about. You can see the full list at the link below. ("UK Global Tariff" is the relevant column).
Let's pick an average tariff figure of ÂŁ150 per 100kg of cheese.
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…https://www.check-future-uk-trade-tariffs.service.gov.uk/tariff?q=cheese&n=25&p=1
Let's pick an average tariff figure of ÂŁ150 per 100kg of cheese.
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…https://www.check-future-uk-trade-tariffs.service.gov.uk/tariff?q=cheese&n=25&p=1
So we have to import 250,000,000 kg of cheese.
That means a total tariff payable of ÂŁ375,000,000. That money has to be paid by the importers (Tesco, Aldi, Sainsburys etc.)
But they're going to turn right around and stick UK consumers with the price hike.
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That means a total tariff payable of ÂŁ375,000,000. That money has to be paid by the importers (Tesco, Aldi, Sainsburys etc.)
But they're going to turn right around and stick UK consumers with the price hike.
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That means we will collectively be paying at least ÂŁ375,000,000 more for the cheese we eat next year in a no-deal Brexit situation.
And that figure's low, because it assumes the cheese magically teleports from producers to supermarkets.
In reality, it has to be transported.
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And that figure's low, because it assumes the cheese magically teleports from producers to supermarkets.
In reality, it has to be transported.
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And what do we know about a no-deal Brexit?
It's a recipe for absolute maximum new red tape. Customs declarations galore, enhanced sanitary inspections. You name it, the cheese will be subject to it. All that costs more money too!
So... expensive cheese. Thanks, Brexit!
/END
It's a recipe for absolute maximum new red tape. Customs declarations galore, enhanced sanitary inspections. You name it, the cheese will be subject to it. All that costs more money too!
So... expensive cheese. Thanks, Brexit!
/END
PS. Here are the original sources for the cheese stats used in this thread...
https://ahdb.org.uk/dairy/trade-dashboard
https://projectblue.blob.core.windows.net/media/Default/
https://ahdb.org.uk/dairy/trade-dashboard
https://projectblue.blob.core.windows.net/media/Default/
Oh, one other thing...
Who gets all that juicy tariff cash? HMRC does!
That's right. In this scenario, Brexit just became a stealth tax...
UK consumers pay ÂŁ375,000,000 more for the cheese they eat. And the UK Government pockets ÂŁ375,000,000.
Who gets all that juicy tariff cash? HMRC does!
That's right. In this scenario, Brexit just became a stealth tax...
UK consumers pay ÂŁ375,000,000 more for the cheese they eat. And the UK Government pockets ÂŁ375,000,000.
If this thread has inspired you to want to find out more about trading on WTO terms, as would be the case in a no-deal situation, can I recommend the thread below? https://twitter.com/uk_domain_names/status/1073221524545363973
