The British government plans to cancel 80 to 90 per cent of all import tariffs if no Brexit deal is reached. The plans would be published if Prime Minister Theresa May failed to convince the parliament of her deal next week.
It concerns “all tariffs on goods that are exported to the United Kingdom”, according to the sources. It is, therefore, the most significant intervention in trade tariffs in the history of the United Kingdom.
Trade tariffs on imports protect local producers against cheap foreign competition. The measure could, therefore, be very damaging for local manufacturers and British agriculture.
Products whose tariffs may be abolished vary from car parts to processed food. The tariffs on more “sensitive” products would remain unaffected. That is 10 to 20 per cent of the rates. This concerns, for example, cars, beef, lamb, dairy and certain types of textiles.