Business leaders in the West Midlands have warned it is "vital" the UK finalises a new trade deal with the EU, with just days to go before the deadline for an agreement.
Greater Birmingham Chambers of Commerce warned businesses in this region would be "particularly impacted by a no-deal scenario" because a significant proportion of goods imported into this region comes from the EU.
Meanwhile, the Society of Motor Manufacturers and Traders (SMMT), which represents carmakers including Jaguar Land Rover, said failure to agree a deal would add an average of £2,000 to the cost of British-built electric cars sold in the EU, making UK plants considerably less competitive.
The UK and EU are attempting to agree a trade deal, to come into effect once the current trading agreement ends on December 31.
A withdrawal agreement was signed before Brexit took place in January this year, signalling the start of a 12-month transition period and giving the UK continued access to the EU's single market.
However, this was only the first stage of the process. The aim was to use those 12 months to agree a new, permanent trade deal. If no such deal is agreed then the UK will trade with the EU on World Trade Organisation terms.
This would mean that tariffs are charged on goods entering the UK from the EU, or British-made goods exported to EU countries. It could also cause delays at borders, due to increased paperwork.
Paul Faulkner, chief executive of Greater Birmingham Chambers of Commerce, said: "Brexit represents the most fundamental change to the UK's trade policy in a generation, and leaving without a deal will have a profound impact on businesses across the Greater Birmingham area.
"The EU is the UK's closest trading partner and due to geographical proximity and trading ties forged over the past 30 years, it will remain an important market for UK businesses in the years ahead. In 2019, 43% of UK exports and 52% of all UK imports were from the EU which represents a significant volume of trade."
SMMT chief executive Mike Hawes added: "Even at this eleventh hour, we remain hopeful that a trade deal will be struck between the UK and EU. Leaving the single market and customs union means we will incur significant additional costs, but a 'no deal' scenario would be far more damaging.
"The resulting tariffs would put our manufacturers at a disadvantage in export markets, raise prices for consumers and make the UK uncompetitive, both as a market and producer. We know the UK government understands this, and we hope it will do whatever it takes to secure a deal that safeguards the sector and hundreds of thousands of livelihoods that depend on its success."
Birmingham Erdington MP Jack Dromey (Lab), whose constituency includes a JLR plant, said that the UK had taken the decision to leave the EU, but added: "The ultimate betrayal of the British national interest would be a 'no deal' Brexit.
"There are 50,000 automotive jobs in the West Midlands that depend upon a deal being deone. Boris Johnson must not let those workers down.
"A no-deal Brexit would mean ten per cent tariffs on vehicle exports, and that would result ultimately in mass redundancies and plant closures."
