The MEP attended a private meeting between the EU Brexit negotiator and a delegation of pro-Leave figures earlier this week.

Mr Woolfe suggested that failing to reach a Brexit deal between the UK and Brussels would have a worse effect on the EU than on Britain.

He said: "We were all saying to Michel Barnier that if we leave on WTO rules Europe will suffer worse than us. 

"I made a very clear point to him: some of the high-end German businesses and European businesses suddenly be hit by a tariff."

The independent politician also revealed traders had informed the delegation a no-deal Brexit would cause a drop in the value of the euro.

Speaking to Sky News, Mr Woolfe continued: "Traders are informing me that the currency would depreciate by 20 percent thus increasing products price in, say, Germany by 20 percent.

"A BMW that might be €50,000 with a Land Rover going to 60,000: what are you going to buy, the Land Rover or the BMW?" 

A study by accounting firm Deloitte predicted economic turmoil for Germany’s famed car industry. 

It found a hard Brexit involving tariffs and a lasting devaluation of the pound could cause thousands of job losses.

The meeting with Mr Barnier came just days after the top EU official met privately with former Ukip leader Nigel Farage.

Also part of the delegation was former UK Minister for Trade and Investment Lord Digby Jones, who warned the European Union not to “push it too far” with the UK during Brexit talks.

He explained: "We have a choice. My message to the 27, after meeting with Barnier, is do not push it too far, because you will not get a deal at all.

"Financial services are very important to Britain. We don’t want European laws and standards to apply to us when we’re doing business in New York or anywhere else abroad.

"What’s that got to do with Brussels? I’m not sure whether Brussels has got that yet."