The potential implementation of a 25% tariff on all Canadian goods entering the United States, set for April 2, has sent ripples through the thoroughbred horse industry. The Canadian Thoroughbred Horse Society (CTHS) has issued guidance to its members to navigate this uncertain terrain. This advisory aims to clarify the implications of these tariffs, which could significantly affect the buying, selling, and breeding of horses across borders.

Industry leaders have expressed concerns about the volatility of the situation. Tom Rooney, CEO of the National Thoroughbred Racing Association (NTRA), emphasized that the situation could change rapidly based on political decisions. He noted that while negotiations might prevent these tariffs from taking effect, preparations are necessary as April 2 looms closer. The Canadian government has already retaliated with its own tariffs on billions of dollars worth of U.S. imports, signaling a tense trade relationship.

The CTHS outlined specific scenarios where tariffs would apply. For instance, mares and foals originating from countries other than the U.S. would be subject to tariffs when entering the U.S., while those born in the U.S. would not. Similarly, horses intended for sale or racing would face tariffs if they originate from Canada. However, temporary entry permits offer a 30-day window for re-entry without paying the full tariff, provided the animals return within the stipulated period.

The proposed tariffs pose significant challenges for breeders and owners who rely on cross-border transactions. Last year, over 157 Canadian yearlings were sold at U.S. auctions, generating more than $7.6 million. Additionally, 36% of the 2023 Canadian foal crop was sired by U.S.-based stallions, amounting to nearly $9 million in stud fees. Industry stakeholders fear that these tariffs could disrupt established business practices and deter future cross-border activities.

In response to these concerns, both Canadian and U.S. organizations urge their members to engage actively in public consultations. The CTHS encourages stakeholders to submit comments during the 21-day public comment period in Canada, advocating for exemptions for purebred breeding and racing animals. Meanwhile, Rooney advises contacting local representatives in the U.S. to voice concerns, emphasizing that collective action can influence policy changes.

As the deadline approaches, the thoroughbred horse industry stands at a critical juncture. Engaging in dialogue and advocacy is crucial to mitigating the adverse effects of these potential tariffs. By fostering cooperation and communication, the industry can work towards solutions that protect the interests of breeders, owners, and service providers on both sides of the border.