Brexit minister Lord Callanan said the government intended to overturn the measures at a later stage.

Political commentators say May's government could face further defeats as members of the House of Lords go line-by-line through the Brexit bill.

Keir Starmer, Labour's shadow Brexit Secretary said the passing of what was a cross-party move was an important step forward.

Starmer said: "Labour has long championed the benefits of a customs union as the only viable way to protect jobs, support manufacturing and help avoid a hard border in Northern Ireland after we leave the EU. Theresa May must now listen to the growing chorus of voices who are urging her to drop her redline on a customs union and rethink her approach."

The Independent newspaper in London said peers had inflicted an embarrassing defeat on the government after voting in favor of remaining in a customs union with the EU after Brexit. It described the move as a challenge to May's flagship Brexit bill.