Tariffs will be cut to zero on 87% of imports to the UK as part of a temporary no-deal plan but prices of some imports including meat, shoes, underpants and cars will go up.

Andrew Percy attacks ‘cack-handed’ move to scrap import tariffs if UK crashes out in October – triggering Ottawa’s refusal to ‘roll over’ existing EU deal.

British goods face tariffs of up to 60 per cent while many imports won't be charged any under latest Tory plans.

But cabinet colleague Greg Clark said government must "defend" industries from foreign competition.

British businesses fear the move could ruin their industries.

"In a stroke of a pen, the Department of International Trade could kill off one of our oldest and proudest industries."

Labour says the government "fiddling while Rome burns" as business groups complain they were ignored.

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

The Department for International Trade (DIT) intends to cut 80-90% of all tariffs imposed on goods imported into Britain, according to Whitehall sources.

But minister says measures would only be implemented if Britain was on course to crash out of EU.

Mr Raymond was responding to claims published by economist Patrick Minford, who predicted a benefit to the country of £135bn from a “hard Brexit” that eliminated tariffs, and a report from the Institute of Economic Affairs recommending a policy of unilateral free trade once the UK leaves the EU.

Slashing tariffs to zero on the majority of UK imports in the event of a no-deal Brexit will be a “sledgehammer for the economy” and deliver a widespread shock across the country, business groups have warned.