No-deal Brexit could see import tariffs slashed to zero under ‘extraordinarily damaging’ government plan

Proposal branded ‘ultimate betrayal’ – because it would unilaterally open up UK markets to cheaper goods from across the world

Tariffs would be slashed to zero on all imports after a no-deal Brexit, under “extraordinarily damaging” plans being considered by the government.

Labour said the move would trigger “serious job losses in key industries from ceramics to farming”, by unilaterally opening up domestic markets to dramatically cheaper goods from across the world.

The GMB union condemned the idea as “the ultimate Brexit betrayal” – while the National Farmers Union said the impact would be “absolutely savage”.

Nevertheless, the Department for International Trade confirmed scrapping tariffs was among “all options” being considered if the UK crashes out of the EU without an agreement.

Liam Fox, the international trade secretary, fears failing to slash duties would sent prices soaring in the shops and hit UK producers who depend on supply chains from the EU.

However, Barry Gardiner MP, Labour’s shadow trade secretary, said: “What is proposed is extraordinarily damaging.

“Reducing all tariffs on imports to zero would undermine our domestic producers in their home markets, and risk serious job losses in key industries from ceramics to farming.”

Mr Gardiner said the strategy would also leave the UK with “nothing to negotiate with” in future trade talks, adding: “Liam Fox is not just shooting himself in the foot, he is shooting himself in both feet.”

A spokesperson for Mr Fox said: “No decision has been taken and the government is currently considering all options in the event of a no-deal with the EU.”

Any removal of tariffs would be a temporary measure and the impact on the economy would be monitored closely, the spokesman added.

Mr Fox revealed his strategy to industry leaders in behind-closed-doors meetings this week, The Huffington Post website revealed.

They fear being undercut by competition from emerging economies, such as China and Brazil, on which – unlike EU imports – tariffs are currently levied.

“We are deeply concerned about the possibility of the UK unilaterally removing import tariffs on our foreign competitors’ goods,” Dr Laura Cohen, chief executive of the British Ceramic Confederation, told the website.

“Liam Fox is concerned about the inflationary impact of Brexit, but this sort of foolhardy action in response could ruin British ceramic manufacturing by wrecking our home market.

Mr Fox revealed his thinking just days after he and Theresa May visited Leave-voting Stoke to reassure residents about Brexit

Jude Brimble, national secretary for manufacturing with the GMB union, said: “Liam Fox’s plot risks smashing the UK ceramics sector into pieces.

“It is the ultimate Brexit betrayal that, just weeks after Theresa May visited Stoke, her cabinet ministers are preparing to sell such an industry here down the river.”

A department spokesperson said: “No decision has been taken on our applied tariffs after we leave the European Union and the government is currently considering all options in the event of a no deal.

“We will need to balance a number of considerations to avoid potential prices rises for consumers and manage the impact on producers that rely heavily on supply chains as well as those who are currently protected from global competition by import tariffs.”