It was important to identify not just which markets we would be selling into, but what we would be selling, he added.
The EU has consistently said since the June 2016 referendum that it's not looking to punish Britain for its vote and is working to get a deal on the future relationship that works for both sides but which is consistent with its rules.
"The idea of punishing Britain is not the language of a club, it's the language of a gang", he said at the annual conference of the British Chambers of Commerce.
Though conceding that tariffs would hurt businesses and consumers, Fox dismissed warnings that Britain was facing an "economic black hole" after Brexit.
"They would certainly be very welcome to visit the Border", he said.
Mike Cherry, national chairman of the Federation of Small Businesses, said discussions over future trade deals were "clearly important" but the priority for firms now was getting clarity about the immediate future with the European Union after Brexit day.
"The quickest way to take some of the heat out of Brexit negotiations is to nail down the terms of a transition period", said Cherry.
The prospect of a border on the island of Ireland has become a key stumbling block in the Brexit negotiations.
If border posts return to Northern Ireland they will be attacked, according to the Taoiseach.
She also argued that it was not in Ireland's interest to have any post-Brexit impediments to trade.
Speaking at the South by South West festival in Austin, Mr Varadkar said if a hard Border was introduced post-Brexit it could lead to vandalism.
She also rejected any suggestion that Ulster would remain locked into the European Union economically, leading to a customs border between it and the rest of the United Kingdom in the Irish Sea.
Kate Hoey, an Ulster-born MP for London and one of the few Labour politicians still carrying the flag for euroscepticism in the party, has voiced similar sentiments, remarking that Remainer threats of civil disorder in the absence of customs-free trade between Northern Ireland and the Irish Republic are "insulting" and only serve to encourage "men of violence".