Brexit

[Muddy Retriever]

Haha, you do realise that we import more as a country than we export and that we export most to the EU, but still import even more from the EU than we export, don't you? And that, if Brexit does goes all 'no deal' the pound will continue its decline against the Euro. So if tariffs are tit for tat applied to each other, those tariffs will most hurt the party who's currency is declining and be of increasingly less pain to the party who's currency is ascending.

I would say the reverse is true. UK exporters will have to face tariffs on their goods making them more expensive but this will be offset by a declining currency making their goods cheaper. EU exporters meanwhile will face a double whammy, the appreciating value of the euro will make their goods more expensive and this will be exacerbated by tariffs on top.

A declining currency is a double edged sword. It's good for exporters but potentially inflationary for consumers. Obviously UK customers will have to pay more for imports. However the Exchequer will get the benefit of collecting all that tariff income and since as you point out, we import more from the EU than we sell to them, there will be more tariff money coming in than going the other way.

Under WTO rules, a country can reduce or eliminate tariffs as long as it does not discriminate i.e. the same tariffs apply to all countries. So it might be useful to eliminate tariffs in some areas like certain foods that the UK doesn't produce itself in order to reduce the price the consumer pays. In the past the UK has been obliged to apply hefty tariffs on food stuff from countries outside the EU, thereby making it very expensive. It could chose now to no longer do so.