The deal - rejected by a 230-vote margin in January - was brought back before the Commons after Mrs May made a last-ditch dash to Europe to plead for concessions over the Irish backstop.
MPs voted by a majority of 149 to reject the deal she agreed with the EU.
"Allowing a free vote on no deal shows Theresa May has given up any pretence of leading the country".
She said: "It surprised me again as it did last time how major the loss was".
Doncaster MP Caroline Flint was one of just three Labour MPs to support Theresa May's brexit deal - which was overwhelmingly defeated in the House of Commons.
The defeat - the fourth worst suffered by a British government - paves the way for a series of votes this week which are set to block a no-deal Brexit and delay Britain's exit from the EU.
She said she was "not frightened" of the people in her Birmingham Yardley constituency who voted to leave, saying if they do not like her views they can vote her out.
While the plans will see tariffs on 87 percent of goods, imported to the United Kingdom cut to zero, the price of some imports, such as meats, will rise.
Battling against her ailment the Prime Minister made a statement after the result of the vote was read out, saying: "I continue to believe that by far the best outcome is the United Kingdom leaves the European Union in orderly fashion with a deal".
Mrs May said a customs union was part of proposals put forward by Labour but argued these had "already been rejected" by MPs. "What we potentially are going to see is this imposition of new terms of trade at the same time as business is blocked out of its closest trading partner".
Walker said May would lead the party into any election.
Ms Trehan said the CBI had reacted with "horror" at the tariffs being announced as a potential option just two weeks away from March 29.
But Corbyn made no mention of a second referendum - which the party is theoretically committed to supporting if it can not secure a general election - in his remarks after the vote, and hardly referred to it in his earlier speech in the Commons debate, it noted.
The motion says: "This House declines to approve leaving the European Union without a withdrawal agreement and a framework on the future relationship on March 29". Now this impasse can only be solved in the United Kingdom'.