According to Allianz Trade, consumers will have to pay an additional £2bn for French cheese, Italian oil, and other foods from the continent when post Brexit border checks are implemented at the end this month.
Ana Boata’s research, who is the head of economic research for the financial services firm, says that the controls will cost the equivalent of a 10% tariff on £21bn worth of products.
The goods affected include cereals and meat products, oils and dairy products, and trees, plants and flowers, which represent around 8pc all UK imports.
These products were given health certificates earlier this year to confirm that they are disease-free. The paperwork will be checked by officials at the end the month.
The Allianz Report stated: “Imports from the EU are likely to increase in price as EU exporters will pass (at least a part) of these increased costs on to their UK clients.”
The suspension of tariffs for a variety of goods imported from countries where the UK does not have a trade agreement will save even more money to households.
A separate measure introduced today will reduce the import tax for products such as cars, fuels, and precious stones, resulting in a savings of approximately £7bn to consumers.
Tariffs on cars, one of the most popular products imported from the EU, will be reduced from 6.2pc down to 0pc. Some processed food products are also being charged less than 10pc.
The World Trade Organisation had predicted that global trade would rebound this year, but warned that geopolitical tensions or political uncertainty could derail it.
Ralph Ossa is the WTO chief economist. He said, “We will live in a world that is more dangerous.”
He said that tensions between China, the US and other major economies could “cascadingly” lead to higher prices.
A government spokesperson said: “We don’t recognise these numbers. The checks will only have a small impact on the food prices for consumers and traders, and save them around £520m per year.
Our border checks are essential to protect the UK’s farmers, food supply chain and natural environment from costly diseases that could reach our shores.