In the resumed Commons session, the chancellor of the Duchy of Lancaster said: "The automotive sector, who I met this week, confirmed that they were ready, the retail sector said they were ready."
Three attendees at the relevant meeting in Coventry this week told the BBC this was not an accurate reflection of Monday's meeting with manufacturers.
"I was at the meeting. There's no way that is the message he could have gone away with," said one business leader.
Another present, when asked if Mr Gove had been told by the car industry that it was ready, replied: "No! We said we are planning as best we can, but cannot prepare for all eventualities and tariffs alone undermine our viability. We want a deal. No deal is not an option. Catastrophic."
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It said smaller companies had said that further down the supply chain, it was impossible to prepare, because they didn't have the resources or the expertise to prepare and they didn't know what they were preparing for.
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Separately, retailers also again disputed Mr Gove's claims about readiness in food supply. The British Retail Consortium said in a statement that it had been "crystal clear" that "it is impossible to completely mitigate the significant disruption which would be caused by no-deal" and "would likely see reduced availability and higher prices".