Recent reports have suggested that the UK Government may be forced to significantly cut trade tariffs on between 80 per cent and 90 per cent of goods in the event of a hard or no-deal Brexit.
According to some, tariffs could be completely done away with for some goods, including parts for the automotive industry, in order to reduce the impact on the UK economy.
The Government has said that cutting tariffs was one of a number of options it would consider if the UK left EU without a deal or suffered a hard Brexit.
Recent votes in Parliament have reduced the chance of a no-deal Brexit, but experts still believe that the Government is keeping all options open for the future.
A number of Brexiteers believe that scrapping tariffs on food and other items could help keep prices lower for consumers.
Earlier this month, Business Secretary Greg Clark told BBC Radio 4’s Today programme: “We have been consulting with different industry sectors on this. It has big implications for different sectors. Ceramics is an industry that I know very well. It has been subject to very unfair competition, to dumping of very cheap ceramic exports from the Far East, from China.”
The Department for International Trade has reiterated that no final decision has been made on tariff rates, but confirmed that there have been discussions across the Government about lowering tariffs in certain situations.
“If we leave the European Union without an agreement, our tariffs will need to strike a balance between protecting consumers and businesses from possible price rises and avoiding the exposure of sensitive industries to competition,” added Mr Clark.
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