The impact of Trump on UK charities

US President Donald Trump is turning the world upside down. The first one hundred days has seen friends become enemies, and enemies become further entrenched. 

 

His impact has been particularly felt in the realm of foreign trade. 02 April 2025 marked Trump’s so-called Liberation Day, on which he announced a broad swathe of tariffs to be applied with nearly immediate effect. The international community reacted with shock. Financial markets plunged, with US Treasuries and equities sinking. Trump’s announcement had the effect of bringing down the international trade order and breaking the trust of allies.

 

Despite the 90-day pause, the damage has already taken affect. The UK has not been spared. Britons were excused from the harshest punishments but are still subject to 10% tariffs for all exports to the US. That means that anything manufactured or coming from the UK will be more expensive for the US customer.

 

The knock-on effects haven’t been fully recognised yet, and there’s still speculation around what Trump could do. For charities, however, it’s worth the exploration into what’s possible to devise mitigation strategies.

 

 

Tariffs could derail overall giving

 

The uncertainty and unpredictability that Trump has introduced may impact overall giving.

 

The Guardian reports that the UK’s growth is on track to slow. They report that the EY Item Club forecasts GDP growth of only 0.8%, down from 1% in February 2025. EY also cut its overall GDP forecast, reflecting poor conditions. Consumers are also feeling the pinch. Ipsos reports that nearly 75% of Britons think that the economy will get worse.  

 

The BBC’s view is slightly different. The say that prices could move up or down. The volatility is explained by companies importing US goods into the UK passing on higher costs. But this could also be mitigated by strong GBP exchange rates.

 

Taking all that together, Trump’s regime has introduced a lot of uncertainty around the cost of everyday things and sentiment. For potential donors, feeling unsure about meeting their own obligations means that they are less likely to give generously.

 

 

The general squeeze on the economy

 

While tariffs might make it harder for donors to give as much as they normally would, there’s a silver lining: charities with digital and retail shops could stand to benefit.

 

Families will be looking to save on essentials including food, children’s clothing, and homewares. For charities thinking of revamping online and physical stores, the American chaos might be a good time to invest in e-commerce.

 

 

A gap in international aid and a calamity in the arts

 

In a radical move to reduce costs, the President axed United States Agency for International Development’s (USAID) international budget. The Associated Press reported that USAID has already closed 20 projects. Most closures are in vulnerable countries suffering war, famine, and facing a lack of basic services. With the US leaving these areas, there’s a gap to be filled.

 

British aid charities may prove a solution. Consider, for example, that the US has vacated some essential services, including water, in Mali. Charities such as WaterAid UK may step in and enhance operations or collaborate with USAID as part of a handover.

 

Like many of the other sectors in which Trump’s policies are creating mayhem, the arts are no different. The President’s cuts to USAID and cuts to diversity, equity, and inclusion (DEI) mean that the arts are disproportionally affected. The National Endowment for the Arts had its funding cut and is eliminating grants.

 

Arts Professional reports on what that means for DEI. They say: “The National Endowment for the Arts has also been barred from using federal funds for the promotion of ‘gender ideology’, leading to it being sued by several arts organisations.”

 

Trump’s policies are, and will, continue to leave a vacuum for arts organisations. Major funders could step in. Art Explora, registered charities in France and the UK, could think about expansion. They already support the arts internationally. The organisation has a strategic advantage. Art Explora has a strong digital footprint, making it easier to increase geographical reach without as much resourcing risk. They already developed an online art history class which is accessible by mobile, device, and laptop. The content ranges from Asian to contemporary art and is already deployed freely across a digital platform.