Small firms ‘have more to lose from EU tariffs’
Small companies will be hit “disproportionately hard” if tariffs are imposed on European Union imports and exports after Brexit, the Federation of Small Business (FSB) has warned.
Nearly two-thirds (63%) of small firms wanted to remain in the single market when surveyed by the FSB in autumn, before Prime Minister Theresa May confirmed the UK would pull out to get full control over immigration.
If tariffs of any level were introduced as a result, more than a quarter (27%) of exporting small companies would be deterred from trading with the EU, the survey suggested. And the figure rose to a third if tariffs of between 2 and 4% were introduced, which the FSB said was the range the EU’s average applied tariff has fallen in recently.
FSB national chairman MIke Cherry said: “The reality is that the EU single market is still a crucial market for smaller firms.”