techUK responds to No Deal tariff regime
Giles Derrington, Associate Director of Policy, responds to announcement of No Deal tariffs.
Responding to the Government's announcement of the No Deal tariff regime, techUK Associate Director of Policy, Giles Derrington, said:
“The proposed tariff schedule in the event of a No Deal Brexit would address one of the major problems facing tech manufacturers and their customers. While many tech products already have zero tariffs through a WTO agreement, today’s announcement would reduce tariffs to zero on other products that sit outside that agreement. These include smart televisions, virtual reality technology and the fibre optic cabling that underpins broadband. This reduces the prospect of tech importers being forced to pass on the cost of tariffs to consumers.
“However, while this tariff schedule is a pragmatic move, it is only one piece of a much larger puzzle. There may still be increased costs due to tariffs being applied to certain manufacturing materials that may impact the tech supply chain. Even more importantly, in a services dominated industry, non-tariff barriers remain the much larger challenge. Today’s announcement is helpful, but does little to change the fact that a No Deal Brexit would be a disaster for the UK tech sector and for consumers.”
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