The move is expected to make items such as coffee, alcohol and other household items cheaper as the country sets independent rates for the first time.
The blueprint for January 2021 holds that 60 percent of trade will come into the UK tariff free as it moves away from EU regulations.
Currently the UK abides by EU legislation on tariffs, where 47 percent of trade is tariff free, which lasts until the end of the year.
The plans would see tariffs on goods not produced in the UK eliminated in order to lower prices on supermarket shelves and widen choice for consumers.
Another planned move is that all tariffs that are currently less than 2.5 percent are to be eliminated altogether.
Other changes would include all import taxes on sanitary products and tampons being abolished too.
The UK will also see thousands of complex EU tariff variations on products scrapped.
Trade Secretary Liz Truss said: “For the first time in 50 years we are able to set our own tariff regime that is tailored to the UK economy.
“Our new Global Tariff will benefit UK consumers and households by cutting red tape and reducing the cost of thousands of everyday products.
“With this straightforward approach, we are backing UK industry and helping businesses overcome the unprecedented economic challenges posed by coronavirus.”
However, some tariffs will remain high to ensure that foreign industries do not flood the market and to keep British producers competitive, applying to agriculture and automobiles.
This includes keeping a 10 per cent tariff on car imports and the UK will also maintain 80 per cent of tariffs on ceramic goods entering the country.
The 10 percent tariff on cars could add to the cost of vehicles from European manufacturers if a trade deal with Brussels is not struck by the end of the year.
The plans were published on Monday to give British businesses plenty of time to prepare for the changes.
It was also released to inform current trade negotiations with the EU and the US so they know what Britain’s baseline trade tariffs will be if a deal cannot be reached.
The Government has set a temporary zero tariff rate on some products used to fight COVID-19 which would otherwise charge a levy under the new regime.
It added that most pharmaceuticals and medical devices, including ventilators, are set to be tariff-free under the new system next year.
Published at Wed, 20 May 2020 01:18:00 +0000