NEWS on Wednesday that US President Trump has paused his plan to impose heavy tariffs on American imports from dozens of countries has caused further uncertainty in the racing and bloodstock world over their potential impact on transatlantic trade.

Earlier this week American media sources were reporting that the US has begun imposing a 20% tariff on horses imported from the European Union and 10% on horses imported from Britain.

The tariffs had been due to take effect on Wednesday (April 9th) but President Trump then announced he was suspending the move for 90 days to allow negotiations to take place. In the meantime he said a 10% tariff would apply to imports from almost all countries, which puts Ireland and the EU on the same tariff level as Britain.

There has not yet been an announcement explicitly stating that the tariffs will be applied to thoroughbred horses and Ireland's Minister for Agriculture, Martin Heydon, is in Kentucky on a trade mission this week, where it is hoped he will get more details on how the tariffs will be applied in the agricultural sector.

It remains to be seen if the European Union goes ahead with its plan to announce a revised set of tariffs on good and services being imported from the US into the EU. It has been suggested that the EU will deliberately target industries which are important in Republican states.

Figures published recently by Horse Racing Ireland show that only 150 of the 5,000 Irish-foaled thoroughbreds exported in 2024 went to the USA. However, that figure does not include Irish horses sold in England, and the value of American purchases tends to be much higher than the average price paid.

On the positive side, the tariff could encourage US-based owners to have their Irish purchases trained in Ireland. Prominent American racehorse owners with horses in training in Ireland include Eleanora Kennedy, Issac Souede, Dean Reeves and Craig Bernick.

Others such as Team Valor and jumps owner Rod Moorhead prefer to move their Irish purchases to the US.

The respected Paulick Report website stated that the owners of overseas-based horses running in American races, such as the Breeders' Cup, would have to pay a "temporary import bond" equivalent to double the applicable import tariff.

If true, this would mean that the likes of Coolmore and Godolphin would have to pay millions of dollars up-front in order to race their European Group 1 winners in America.

Breeders' Cup spokesperson Claire Crosby told The Irish Field: "Breeders’ Cup is monitoring the potential impact tariffs may have on our international nominators and participants. While the situation continues to evolve, we remain in consultation with advisors and anticipate providing guidance when appropriate."

Too early

ITBA chairman Cathy Grassick commented: “It’s indeed very disappointing to hear of the US proposed tariff on European goods. I think it is too early to predict how this tariff will be applied and if it will affect our industry.

“It is very positive to hear that Minister Heydon is making a trade mission to the US and will visit both Washington DC and Kentucky as part of this trade mission.

“ITM chief executive Charles O’Neill will also be in attendance, and I am very confident that they will do their utmost for our industry.”

Regina Byrne, manager of the Association of Irish Racehorse Owners, said: “Until we see the full details of the tariffs on the EU, it’s hard to quantify what the possible impact could be on any industry but tariffs are never welcome.

“Our industry is dependent on owners using their disposable income to run their horses, the fear would be that any increases in costs could see a reduction in expenditure on luxury items.

“Traditionally, there has been a very strong demand and market for competitive horses in Irish maidens being sold into America with a lot of owners relying on this trade to fund their racing and breeding interests here at home , this is a major area of concern for us and could have serious implications on our whole industry.”

Negotiating

David Cox of Baroda Stud has extensive dealings with American clients. He said: “This is something that has to be taken very seriously by HRI and the Government officials. We need people at the top of their game negotiating on all our behalf’s with this.

“I feel there’s no need to panic as there will be a lot of negotiating to do yet. I read a few weeks ago that a big Canadian breeder David Anderson was moving all his yearlings at great expense to Kentucky to avoid the tariffs and then this week it was announced that there will be no tariffs between the USA and Canada.

“There is a lot of wheeling and dealing to be done yet and hopefully what’s happened with Canada shows the USA are up for negotiations. The reality of the competitive nature of racing is America needs European horses if they want to get their hands on the best turf horses so that will keep driving trade.

“America is an important export area. We have some great USA clients and friends with horses on the farm here in Baroda. As consignors we have sold plenty of horses with success to America through Goffs, Tatteralls and Arqana.

“The private market for horses in training is important too. For example Dupont Law, who won on the opening day of the flat for Ciaran Murphy, was snapped up quickly by agent Mark McStay for an American client. It is important for both sides to work through this to come out with some sort of satisfactory solution.”

Henry Beeby, CEO of Goffs, added: “This is a complication we could have done without in an ideal world. But we need more details and I understand the Minister will seek clarity when he in the States next week.

“Goffs was less reliant on US buyers last year and a significant number of them keep their horses in training in Ireland initially. Americans need turf horses and they will still come here.

“We will be targeting them and also increasing our presence in the Middle East. We will make sure the buyers are at Goffs.”

Simon Kerins, CEO of Tattersalls Ireland, said: “It is too early to know the details of these proposed tariffs and if the export of thoroughbreds will be included. We will have to wait and see see how it unfolds and work with all the relevant parties to understand the full implications.”