UK Foreign Secretary Dominic Raab called the EU position 'stubborn' and said the UK might end up leaving on WTO terms.
Following these comments the pound hit a two-year low on Monday against the US dollar.
Many investors say a no-deal Brexit would send shockwaves through the world economy and put Britain into recession.
And Boris Johnson's spending plans aren't helping, if the no-deal scenario unfolds, - experts say.
Kevin Matthews, assistant history professor, George Mason University: "He was in Manchester yesterday, promising 3.6 billion pounds - that's roughly 4.4 billion US dollars - to help depressed areas throughout the United Kingdom. That's on top of his other pledges to add more police to the streets, and a mass of tax cuts that will would help the wealthy, who are mainly his supporters in the Conservative Party. The problem with that is he is also declaring that he will crash out of the EU in October if he doesn't get the deal that he wants. And the estimates are if that happens, that will plunge the UK into a recession, and that could take public finances down by roughly 30 billion pounds a year - that's 37 billion US dollars."
Confederation of British Industry released a new report, saying that the EU is just as poorly prepared for a no-deal Brexit as the UK