Lidl Ireland's warnings to UK suppliers that it will start charging them the cost of additional tariffs in the event of a no-deal Brexit indicates the challenge that awaits British operators should the country leave the EU without a deal in October, a leading retail analyst has said.
Fiona Cincotta at www.cityindex.co.uk was commenting following the news that Lidl's Irish operation has contacted its UK-based suppliers to notify them that their contracts with the discounter contain a DDP ('delivered duty paid') clause, and that they would be liable to pay tariffs should any occur.
Should a no-deal Brexit occur, tariffs would be subject to World Trade Organization (WTO) rules, which would likely lead to significant cost increases for suppliers, and challenges for retailers with operations outside of the UK.