Marks & Spencer warned today that its popular Percy Pig sweets could be hit by tariffs if it re-exports the product to European Union countries, including Ireland.
CEO Steve Rowe said the pink sweets, along with about a third of the products in M&S's food business, are subject to very complex "rules of origin" regulations that form part of Britain's trade deal with the EU.
The rules relate to the composition of individual products and how much of it has been altered in the United Kingdom. Any product that is manufactured in Europe, imported into the UK and then re-distributed to EU countries faces a tariff. "The best example I can give you of that is Percy Pig," Rowe told reporters. "Percy Pig is actually manufactured in Germany.