Trump latest: UK responds to latest tariffs move - as Starmer challenged to sue the president

Thanks for joining us - here are the main developments from this afternoon and into the evening:

• Donald Trump has announced a 15% global tariff on goods imported into the US, up from the 10% he announced yesterday;
• That came after the US Supreme Court ruled the president's previously imposed levies were illegal;
• Trump described that ruling as "ridiculous" and "anti-American", and said the new blanket rate was "legally tested";
• Our US correspondent Mark Stone said Trump had created "a whole world of mess and uncertainty" with his latest move;
• That uncertainty has been condemned by the German chancellor, and the British Chambers of Commerce;
• But the UK government has said it expects its previous "privileged" arrangement of a 10% tariff to stay in place.

Scroll down for more in depth updates and analysis from today, and we'll be back with any major developments.

Donald Trump is trying to get back on to the front foot when it comes to tariffs, but there's no doubt the Supreme Court's ruling yesterday was a big blow to his agenda.

With his previously imposed levies ruled illegal, what happens to the billions of dollars the US government has collected? Can businesses expect some big money refunds?

Our US correspondent James Matthews explains:

The government has been asked today about the latest announcement from Donald Trump regarding tariffs.

As we reported in our 21.19 post, British businesses are concerned things will get worse from them.

Trump's new announcement of a blanket 15% global rate on US imports exceeds the 10% rate he had previously agreed with Sir Keir Starmer, which has created some uncertainty.

A UK government spokesperson said: 

"This is a matter for the US to determine but we will continue to support UK businesses as further details are announced.

"Under any scenario, we expect our privileged trading position with the US to continue and will work with the administration to understand how the ruling will affect tariffs for the UK and the rest of the world."

The British Chambers of Commerce has warned Trump's new 15% global tariff rate will further impact UK businesses.

The country's biggest business organisation called on the government to continue conversations with US counterparts to ensure the advantage secured by the president's previous deal with Sir Keir Starmer endures.

Starmer had previously secured an agreement with Trump for Britain to receive a lower 10% tariff rate, with further carve-outs for its steel industry and car manufacturers agreed later.

A government spokesperson has said they expect the "privileged trading position with the US" to continue despite today's announcement.

'Bad for trade, bad for consumers, bad for business'

William Bain, the BCC's head of trade policy, said: "We had feared the president's plan B response could be worse for British businesses and so it is proving.

"This means an extra 5% increase in tariffs on a wide range of UK goods exports to the US, except those covered under the Economic Prosperity Deal."

He said this will be "bad for trade, bad for US consumers and businesses and weaken global economic growth", adding: "Businesses on both sides of the Atlantic need a period of clarity and certainty. Higher tariffs are not the way to achieve that."

Some US importers who paid what may turn out to be excess tariffs after Trump's previous levies were ruled illegal are looking into possible refunds.

Some foreign companies are also wanting their money back.

Bernd Lange, chairman of the European Parliament's trade committee, said excess tariffs "must be refunded".

He estimates German companies or their US importers alone overpaid more than 100bn euros (£874bn).

Trump has insisted the US won't be paying back any of the money it's taken from import levies since his "Liberation Day" last year.

Ben Harris, vice president and director of Economic Studies at the Brookings Institution, says America's credibility has "taken a big hit" because of Trump's approach to tariffs.

He tells Paste BN it will take "years if not decades" to rebuild.

Harris says the president has to convince the US public his economic agenda is working, with the midterms coming up in November.

But he has a fairly substantial economic problem on his hands, and only about six months to fix it. 

German chancellor Friedrich Merz said the "biggest poison" for the economies of Europe and the US is "constant uncertainty" about tariffs, and the uncertainty must end.

Speaking to German broadcasters, Merz said he expected the strain on German companies to be reduced after the US Supreme Court's ruling yesterday, and would closely coordinate with other EU nations on a joint position ahead of his upcoming trip to the US.

He noted the ruling appeared to leave sectoral tariffs - such as those on steel, aluminium, and cars - in place.

By Mark Stone, US correspondent

So Trump and tariffs - what's going on? Let's start with the latest development and work backwards. 

The president has announced a tariff of 15% globally. 

Now you might be thinking "didn't he set it at 10% on Friday?" Yes he did. But now he's raised it to 15%.

The latest pronouncement came - on Truth Social, of course - just before lunchtime on Saturday. 

Here's the full post and we've highlighted the key bits:

What does all this mean? It's a good question and one which governments globally are asking themselves, not for the first time.  

The president is using a new statute - a new avenue effectively - to levy duties on foreign goods temporarily, because the old statue which he'd been using since Liberation Day last April was deemed illegal.

That happened on Friday when the Supreme Court (the highest court in the land) ruled by a majority of six to three that the president's methods to impose tariffs were unconstitutional.

Six of the justices ruled the tariffs exceed the powers given to the president by Congress under a 1977 law providing him the authority to regulate commerce during national emergencies created by foreign threats.

Watch: What happens to tariff cash already collected?

So the president and his team are looking for new ways - new statutes - to recoup some of his losses (should he have to repay the tariffs - the Supreme Court, unhelpfully, did not pass judgment on this) and to replace his tariff system.

Remember this vital point: so much of Trump's policies, his power, his ability to call the world to heal has been based on his ability to strike any country he wants with crippling tariffs.

So, his immediate response to the Supreme Court decision was to use a different mechanism - Section 122 of the Trade Act of 1974 to be precise - to impose 10% global tariffs. He had the option to impose 15%, not 10%, and on Saturday, just a day after setting it at 10, he raised it to 15. 

That can only last 150 days. That's why he says in his social media post that he will look for new ways of levying duties. 

As ever with all this, nothing is clear-cut. There are exemptions including on agricultural products, steel and cars, but there is confusion over this as governments seek clarity. 

It's a whole world of mess and uncertainty, again, for the whole world.

Alan B Morrison, professor at the George Washington University Law School, has told Paste BN he would be "shocked" if there are no more lawsuits over Trump's latest tariffs.

He said Trump is "trying to do many things that he can't do under the statute".

"Yesterday he said he was going to have a 10% levy, today it's up to 15%, tomorrow it could be 25%," Morrison said.

For context: Trump has said the new 15% global tariff rate on imports into the US is effective immediately. It's the maximum rate he can impose under existing legislation.

Morrison said the president loves tariffs, and he is going to try to keep using them with whatever tools he has.

'Big problem'

He said the president has a "terrible budget imbalance" and he's going to have to pay back around $150bn, if not more, to people who have imported goods to the US, which is a "big problem for him".

That refers to money brought into the government by the previously imposed levies, which the Supreme Court has ruled unlawful. Trump has insisted no money will be paid back.

Asked how Trump was able to impose the sweeping new global tariffs, Morrison said the Supreme Court ruled that the statute he relied on previously was not a proper basis for the tariffs.

But he still has other statutes that do allow some tariffs under some circumstances (see 16.48 post).

So Trump has "moved to them to try to recoup some of the losses" from the previous tariffs he imposed.

Let's bring you some British reaction now to developments of the past day regarding tariffs.

Staunch Trump critic Sir Ed Davey, leader of the Liberal Democrats, has said the UK government should sue the president.

Speaking at an event in Edinburgh today, he called Trump the "most dangerous, damaging US president of modern times".

"My advice today to Keir Starmer is to sue Donald Trump for $100bn or the damage he has caused to Scotland and our country," he said.

"It's the only language he understands."

Starmer's approach has been wrong, he told the Press Association, adding: "You can't kowtow to a bully."