Thoroughbred industry stakes holders got positive news April 2 related to the United States' global tariff structure announced by United States President Donald Trump, aimed at enhancing national and economic security. Horses eligible under the United States-Mexico-Canada Agreement will continue to cross the U.S.-Canada border duty-free.
A fact sheet issued by the White House stated: "For Canada and Mexico, the existing fentanyl/migration IEEPA orders remain in effect, and are unaffected by this order. This means USMCA-compliant goods will continue to see a 0% tariff."
Under the USMCA, Thoroughbred horses (classified under Codes 0101.21.00 for purebred breeding animals and 0101.29.00.20 for others used for racing) retain their status as duty-free goods, ensuring uninterrupted cross-border movement vital to the industry.
"We haven't had a chance to look at the details, but I'm extremely thankful at the moment. I'm relieved," said Sherry McLean with Northern Dawn Farm in Ontario. "I am glad your representatives in Kentucky have said something. We are a major contributor to many of the farms down there."
McLean referred to a resolution passed by the U.S. Senate 51-48 that would end the emergency declaration Trump used to impose the 25% tariff on Canadian imports. Kentucky Senators Mitch McConnell and Rand Paul joined all Democrat senators in backing this resolution, which is largely symbolic because the Republican-led House of Representatives blocked the resolution, according to an April 3 report by the Wall Street Journal. Paul, a co-sponsor of the legislation, has reportedly argued that tariffs are a tax that can only be imposed by Congress.
Prime Minister Mark Carney said the Canadian government will be responding to Trump's tariff orders with a reciprocal 25% tariff on all vehicles imported from the U.S. that are not compliant with USMCA, according to an update from the Canadian Thoroughbred Horse Society. There being no reference to any other counter-tariffs, this would indicate that Canada, like the U.S., will maintain the status quo regarding the USMCA.
The CTHS called the continuation of duty-free transport "exceptional news" that "recognizes the long-standing and mutually beneficial relationship between Canadian and American Thoroughbred breeding and racing operations."
The CTHS added its "sincere thanks to the many industry members, organizations, and government officials in both countries who voiced the importance of this issue," as well as U.S. businesses and officials, in working to protecting the interests of the Thoroughbreds in a cross-border industry.
The tariff revision also was welcome news to executives with Keeneland and Fasig-Tipton, who were bracing for a negative impact on their auctions.
"This is very good news, and we appreciate the efforts of all parties to continue the mutually beneficial relationship between American and Canadian Thoroughbred interests," said Fasig-Tipton president and CEO Boyd Browning Jr.
Keeneland's vice president of sales Tony Lacy said the Lexington auction house had been very active in lobbying to keep the Thoroughbred industry free of tariffs.
"We are verifying everything, but this is extremely positive news," he said. "The Thoroughbred industry in both North American countries is extremely interdependent. Any interruption in free travel and trade would have had an extremely negative impact on both sides of the border. We are grateful for the lobbyists' efforts in helping protect Thoroughbreds from any such impact."
The National Thoroughbred Racing Association released the following statement from its president and CEO Tom Rooney:
"The NTRA is grateful that the mutually beneficial relationship between American and Canadian Thoroughbred racing can continue unimpeded. This is great news for the industry in general, and Kentucky specifically. I'm glad our efforts ensuring the ability to transport American and Canadian horses across our shared border paid off, and that the economic value that Canadian owners, breeders, and trainers bring to American farms will not be eliminated.
"We worked tirelessly with Canadian officials, the Trump administration, and particularly Rep. Andy Barr and his office, with whom we collaborated to send letters to the Secretary of Commerce and the United States trade representative advocating for this continued exemption. We will continue advocating on behalf of the Thoroughbred racing industry."
