PERHAPS there was no greater equine export from Canada to the United States of America than Northern Dancer, widely regarded as one of the greatest all-time sires.
Bred in Ontario by E P Taylor, chairman of the Ontario Jockey Club, Northern Dancer became the first Canadian-bred to win the Kentucky Derby in 1964.
Now, the Canadian bloodstock and equine industry is bracing itself for the impact of US trade tariffs, set to be implemented on April 2nd. The effects will ironically be most felt in Ontario, a province that has over 10,000 thoroughbreds and strong ties to the bloodstock, sport horse and racing industry on both sides of the border.
The United States, under the new Trump administration, introduced a 25% tariff on all Canadian goods entering the country on March 4th. That measure was then delayed until early April.
Canada, the largest supplier of steel and aluminium to the United States, hit back with a 25% retaliatory tariff on these metals and other goods, including computers and sports equipment worth approximately $30 billion.
While the initial round of Canadian import tariffs did not apply to pure-bred breeding and racing animals, it is likely that future tariffs could match those planned to be reintroduced by the US.
Should the US and then Canadian reciprocal tariffs go ahead next month, their impact will be felt on both sides of the border, including the movement of bloodstock, standard bred and sport horses for sales, breeding and competition.
Products from equine supplements, hay, grain, saddlery and horse shoes will be affected too. Feed and saddlery suppliers are already seeking to source alternative suppliers outside North America.
Semen affected
Measures will also have an impact on the AI (artificial insemination) equine export business, as a number of Canadian studfarm owners have already experienced. When the US tariffs were in place for a short time at the start of March, there was some confusion over the rate to charge. However, some US border agents applied 25% tariffs to semen shipments coming in over the border, a cost based on the stud fee.
Irish Draught fan Christine Sweet, from Alberta, has been working on a long-held ambition to make Sean Barker’s Gortfree Hero readily available to Canadian and American breeders. Bred by Francis Lafferty, the Castana son is a three-time winner of the Irish Draught stallion class at Dublin.
“I’ve been fortunate to have Sean Barker agree to work with me to bring his prized Irish Draught stallion Gortfree Hero’s genetics to North American breeders. It’s taken patience, the help of some awesome friends and, very soon, he’ll be ‘in the tank’ at Heide Veterinary Services,” Christine, a keen onlooker at last year’s Horse Sport Ireland stallion inspections in Cavan, said in a Facebook post.
In an update to The Irish Field this week, she said: “This is my perspective from importing Gortfree Hero semen that’s not even on Canadian soil yet. It’s hard to know how to promote the product at this point, just because the majority of the customers are likely in be the US.
“So, I’m just trying to figure out how we can still deliver Gortfree Hero to North America, but the cost could be prohibitive. So, just waiting for April 2nd is kind of where I’m at.”
Cancelled shipments
Emma Elly stands the Irish import Derryinver Luxury Cruise at Bayview Stud in Ontario. Bred by Tom and Linda Magee, the Lux Z stallion is out of their good Cruising mare Icing and was competed here by Edward Doyle.
Christine Sweet has been working on a longheld ambition to make Sean Barker’s Gortfree Hero (pictured at the Dublin Horse Show with Wayne Chapman) readily available to Canadian and American breeders \ Susan Finnerty
She recently lost one AI order due to the tariff and says their reintroduction will have a hugely negative impact on the industry.
“We were affected last week, when the tariffs were in effect for a couple of days. We had a US client wanting a collection from Luxy on Friday, but our driver had to call off all shipments to be taken from Ontario to the US (which is their business to take all the collections from standardbred farms in Ontario),” she said.
“They had to cancel everyone, as border officials had told them on the Wednesday that they wouldn’t get through without paying tariffs and that they needed a new business number system, that is not yet in place and they didn’t know what to charge on semen either.
“We had to cancel our client’s collection, whose mare was ready to be bred on Saturday morning.
“If the tariffs go into effect, the already struggling horse industry will be destroyed. Many breeders in Ontario sell their foals into the US through relationships built over years.
“The tariffs are another charge that I feel will tip the balance even further into losses for breeders, who already have a minimum of two years invested into a planned foal through to weaning, extending to five years for that wanted four-year-old ready to be started.
“The divide is already extreme between what buyers can afford and what breeders can produce a foal for. Tariffs are likely the last straw for many,” said Emma.
Derryinver Luxury Cruise, ridden in Ireland by Edward Doyle, now stands in Canada and has already been affected by US tariffs \ Anne Hughes
Nearly nine billion
The full impact of potential tariffs on the Canadian horse industry, estimated to contribute $8.69 billion annually to their economy, is unknown at this point.
Equestrian bodies, such as Standardbred Canada (SC) and the Canadian Thoroughbred Horse Society (CTHS) are monitoring the situation and collaborating with industry leaders and government representatives.
One response is to request an exemption to Canadian tariffs for pure-bred breeding and racing animals.
It’s unclear yet how the tariffs will affect the movement of competition horses, such as the movement of sport horses between Canada and the East and West Coast US circuits. Previously, bloodstock and sport horses have routinely crossed the border for years, tariff-free.
The Canadian government is currently seeking equestrian industry feedback through an online form made available until March 25th, about its proposed countermeasures to US tariffs.
Even if Canada does not introduce reciprocal tariffs, a 25% tariff would be a major blow for Canadian breeders and owners exporting to the US market.
Last year, the combined figure for Canadian-bred thoroughbred and standardbreds, sold at US yearling auctions, was valued at US$12.4 million. An additional 25% in tariffs could be the tipping point for vendors.