The Potential Impact of Brexit Without a Trade Deal

Puzzle with printed EU and UK flags is seen in this illustration taken on Nov. 13, 2019. Dado Ruvic/Reuters

LONDON/BRUSSELS—Britain and the European Union are seeking a post-Brexit trade deal, with failure likely to result in increased chaos in mutual trade, financial markets tumbling, and huge economic costs.

Here are some of the potential pressure points of a failure to reach agreement on trade.

Sterling

Investors and banks have long predicted a trade deal would be done, so a no-deal would hit the British pound, foreign exchange traders say.