The British government has announced that 88 percent of imported goods would be tariff free in the event of a no-deal Brexit under a new temporary tariff regime.
The announcement came as a ‘No 10 source’ says a Brexit deal is “essentially impossible” after a call between Boris Johnson and Angela Merkel.
The new tariff regime, which came as a modest revision of the earlier regime published ahead of the original Brexit day on March 29, includes changes to tariffs concerning trucks, bioethanol and clothing after a no-deal Brexit.
Specifically, London would lower tariffs on HGV trucks entering the British market, adjust tariffs on bio-ethanol to retain support for British producers, and apply tariffs to additional clothing products to ensure the preferential access to the British market currently available to developing countries — compared to other countries — is maintained.
According to the Treasury, the temporary tariff regime would apply for up to a year while a full consultation on a permanent approach will start in January 2020.
Trade Policy Minister Conor Burns said: “The UK will be leaving the EU on Oct. 31 and we are working with businesses to ensure the UK is ready to trade from day one.”
“Our temporary tariff regime will support the UK economy as a whole, helping British businesses to trade and opening up opportunities for business to import the best goods from around the world at the best prices for British consumers,” he added.
In a separate development, the President of the European Council, Donald Tusk, sent a public tweet to Boris Johnson, writing: “What’s at stake is not winning some stupid blame game. At stake is the future of Europe and the UK as well as the security and interests of our people.”