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EU television brands facing steep losses if UK tariffs applied in latest Brexit hurdle

© Loewe

This week, EU television manufacturers warned that an unfavourable Brexit deal could cause severe damage to the industry – as the UK is one of the primary markets for their exports.

With Brexit negotiations ongoing, and a No Deal still on the table, EU businesses have been ‘breaking ranks’ to pressure the European Commission to find an acceptable compromise.

Facing tariffs in a No Deal Brexit scenario, European manufacturers could lose nearly 1 billion euros worth of business if Brussels doesn’t agree to a free trade deal with Britain.

Panasonic and Samsung as well as LG are among the companies that would be severely affected by import tariffs, due to small margins on TV sales – which in a No Deal Brexit scenario would mean the loss of thousands of jobs.

Digital Europe, which represents the European tech industry, said this week that there should continue to be “rules of origin” which will “allow tech products assembled in Europe, such as TVs, to take advantage of zero tariff trade.”

In the event that there is no free trade agreement between the EU and Britain, the industry could be locked out of a key market – one of the many issues facing European businesses.

With Britain leaving the European Union’s customs area, goods going to the UK could face tariffs according to WTO terms in the event of a No Deal – putting jobs in the tech and media industry at risk. In the event that there is a No Deal, manufacturers may have to re-locate production lines to the UK, which would be another blow to European tech jobs during one of the worst recessions in memory.