Canadian Horse Racing Braces for Impact as Tariff Deadline Looms
Table of Contents
- 1. Canadian Horse Racing Braces for Impact as Tariff Deadline Looms
- 2. The Stakes: Cross-Border Breeding and Economic Impact
- 3. Financial Realities: Millions at Risk
- 4. The Semen Shipping Saga: A Complicated Breeding Landscape
- 5. Strategic Shifts and Uncertain Futures
- 6. The Big Picture: an Industry Without Borders
- 7. Given the potential economic impact of tariffs on Canadian horse breeding, what steps can Canadian breeders take to mitigate the financial risks associated with these tariffs?
- 8. Canadian Horse Breeding Industry Faces Uncertain Future Amidst Proposed Tariffs – An Interview with Dr. Eleanor Vance
St. Thomas, Ontario – As the clock ticks down to April 2nd, David Anderson, a leading figure in Canadian horse breeding, is bracing for potential economic fallout. The proposed 25% tariffs, initially paused by then-President Trump, on certain Canadian goods threaten to disrupt the intricate and frequently enough cross-border world of horse racing and breeding.
The Stakes: Cross-Border Breeding and Economic Impact
Anderson, who operates Anderson Farms and serves as president of the Canadian Thoroughbred horse Society, is deeply concerned about the widespread effects. “It’s all breeds, it’s show horses, ponies for kids, draft horses. All kinds of breeds will be impacted,” he said, highlighting the potential damage beyond just the racing world.
The core issue revolves around the international nature of thoroughbred breeding. Canadian breeders frequently send mares to Kentucky, the heart of the American horse racing industry, to be bred with top stallions. They then return to Canada to give birth to canadian-bred foals. The proposed tariffs directly threaten this process.
Last year’s King’s plate, Canada’s premier thoroughbred race and the first jewel of their Triple Crown, saw all top three finishers of Canadian origin from Kentucky sires. Among whom, the winner of the $1-million race was Caitlinhergrtness by Omaha Beach.
Under the proposed tariffs, a canadian-born horse entering the U.S.woudl face a tariff, and vice versa. While temporary permits exist, they require a cash bond equal to the tariff value, refunded only upon the horse’s return within a year.
Financial Realities: Millions at Risk
The numbers paint a stark picture.In 2024, 268 Canadian yearlings (thoroughbred and standardbred) fetched approximately $12.4 million in the U.S. market. Of those, 157 thoroughbreds accounted for over $7.6 million, while 110 standardbreds brought in roughly $4.8 million.
If tariffs are imposed, breeders could be forced to post a bond and pay a 25% tariff on auction sale prices, potentially costing them $3.1 million (roughly $4.5 million Canadian) based on the previous year’s figures. This doesn’t even account for potential retaliatory measures from Canada, wich could further damage the industry.
| Category | 2024 Sales (USD) | Potential Tariff impact (USD) |
|---|---|---|
| Thoroughbred Yearlings | $7.6 Million | $1.9 Million |
| Standardbred Yearlings | $4.8 Million | $1.2 Million |
| total | $12.4 Million | $3.1 Million |
The National Thoroughbred Racing Association (NTRA) is closely monitoring the situation, working to understand the implications for American breeders as well.
The Semen Shipping Saga: A Complicated Breeding Landscape
The tariff threat extends beyond the physical movement of horses. There were concerns about potential fees on shipped semen, calculated based on the stud fee. Bulldog Hanover, a standardbred stallion at seelster Farms in Lucan, Ontario, serves as a prime example. His stud fee is $15,000.A 25% tariff would add $3,750 each time his semen crosses the border to breed a U.S.-based mare.
Considering that multiple shipments are frequently enough needed to impregnate a mare, breeding costs could skyrocket. In some cases, costs could increase by as much as 75 percent, totaling $26,250 (including the original stud fee and tariffs).
Ontario Racing estimates that American clients account for 23% to 55% of the business for the province’s top standardbred farms. Significant U.S. tariffs could lead to losses of 25% to 50% for these farms.
Strategic Shifts and Uncertain Futures
The tariff threat has pushed some breeders to modify their strategies. Anderson shifted his plans to safeguard his business from potential losses. “I sell all of my yearlings in the United States, they’re all Kentucky-sired,” he explained. “So my entire yearling crop that I’ll be selling this fall is going to be subject to a 25-per-cent tariff… I’ve sent all of my yearlings to Kentucky before April 2.”
The uncertainty surrounding the tariffs is palpable. “The buzz words right now are ‘fluid,’ and ‘clear as mud,'” Anderson lamented. He is working with Tom Rooney, president/CEO of the National Thoroughbred Racing Association, to navigate the complexities.
The Big Picture: an Industry Without Borders
Anderson recognizes that the proposed tariffs could force drastic decisions. “I guess in theory in this case if we want to stay in the horse business we’re all going to have to pack up and go to the U.S.,” he said, contemplating a move to Kentucky. “Am I going to sell my farm and lay off my people who’ve been with me for over 30 years and go to Kentucky, buy a farm and kind of start all over again with new people? I don’t know if I’m going to do it.”
The Canadian horse industry could also look to Europe, Japan, and Australia for alternative business opportunities. While transporting horses overseas is expensive, it may be more cost-effective than paying a 25% tariff. “From Europe it’s $25,000 in airfare but on a $5-million horse it’s cheaper than paying $1.25-million in tariffs,” Anderson noted.
Furthermore, increasing international trade could benefit the genetic diversity of Canadian horses. “From a breeding viewpoint, our genetic pool is tight enough genetically it’s significant to mix into your programs,” Anderson added. “it [going more internationally] wouldn’t be a bad thing in many ways, it just would be a lot more expensive.”
“The horse industry knows no political or economic borders,” anderson emphasized. “We’re are all driven by a shared passion for the sport and industry we’ve built together.”
Given the potential economic impact of tariffs on Canadian horse breeding, what steps can Canadian breeders take to mitigate the financial risks associated with these tariffs?
Canadian Horse Breeding Industry Faces Uncertain Future Amidst Proposed Tariffs – An Interview with Dr. Eleanor Vance
Archyde News – March 21, 2025
Archyde News: Welcome, Dr. Vance. Thank you for joining us today. For our readers, you are the Chief Economist at the Canadian equine Council. We’re here to discuss the potential impact of the proposed 25% tariffs on the Canadian horse racing and breeding industries. Can you give us an overview of the situation?
Dr. Vance: Certainly. The situation is concerning. These tariffs, especially on horses and potentially on semen shipments, pose a notable threat to the economic viability of Canadian horse breeders and racing operations. The cross-border nature of breeding, with Canadian mares often bred with top stallions in Kentucky, is at the heart of the problem.
Archyde News: The article mentions significant financial risks. Could you elaborate on the potential economic impact? Are we looking at a significant loss for the Canadian horse industry?
Dr. Vance: absolutely. based on last year’s sales figures, the tariffs could cost the industry millions of dollars. We’re looking at over three million dollars potentially lost in auction sales alone, and this doesn’t even account for added costs related to stallion semen and potential retaliatory tariffs. the standardbred sector seems to be significantly impacted as a huge percentage of thier clientele is based in the U.S.
Archyde News: The article highlighted the complications around the tariffs which extend to the shipping of semen. How could this affect the costs of breeding?
Dr. Vance: Imagine a stallion like Bulldog Hanover – his semen being shipped across the border. A 25% tariff on that stud fee will add significantly to the cost of breeding. Considering the need for multiple shipments, breeding costs could increase drastically. This makes it far harder for Canadian breeders to compete, or even stay in business.
Archyde News: We’re seeing breeders making strategic shifts such as moving yearlings to the U.S. before the deadline. Are there other potential adaptations or choice strategies open to Canadian breeders?
Dr. Vance: Yes, there are some. Breeders might explore markets in europe, Japan, and australia.These markets offer potential alternatives, though international transport of horses is expensive, it appears to be cheaper than paying the exorbitant tariffs. The potential to expand the gene pool of Canadian horses by importing them from places outside of the country is something to consider.
Archyde News: The article ends on the note that the horse industry knows no economic borders, what alternatives does the horse breeding industry have?
Dr. Vance: A lot of breeders are working with organizations such as the National Thoroughbred Racing Association to navigate the complexities of the tariffs. Breeders will have to make a call on whether it’s even worth it anymore to stay in Canada.
Archyde News: This is a very crucial moment for the industry. Where is the most important step to be taken next?
Dr. Vance: The most important step right now is to open up discussions between the Canadian and U.S. governments. Finding a solution that protects Canadian breeders, and the international horse industry long-term, is essential. We hope we can move forward quickly, and prevent any lasting impact on our industry.
Archyde News: Thank you, Dr. Vance, for shedding light on this complex situation and for your insights. This is an issue that requires thoughtful actions and policies, the ramifications of which extend way beyond just the horse industry.
Dr. Vance: Thank you for the chance to discuss this crucial topic.
Archyde News: our readers, what do you think the long-term effect of these tariffs will be? Share your thoughts in the comments below.
