Irish producers have already been hit by the fall in the value of sterling as a result of Brexit, but Mr Creed said a hard Brexit “would make that look like a teddy bears’ picnic”.

The announcement comes as Ireland’s taoiseach, Leo Varadkar, said his government was stepping up preparations for a no-deal Brexit.

Ms May is seeking to secure further concessions from European leaders on the controversial issue of the Northern Ireland backstop, which dictates what should happen if there is no agreement on the future relationship between the UK and EU.

However, her European counterparts have insisted there can be no renegotiation of the deal agreed late last year.

Mr Varadkar said he had held a 40 minute phone call with German chancellor Angela Merkel and agreed there would be no changes to the withdrawal agreement.

He said: “Once again what we both really agreed is that once again this is a problem created in London... and we’re really looking to them for a solution.

“Those who create a problem must be the ones who have a responsibility to come up with a solution. We need to hear from them.”