THE potential impacts of the USA imposing 20% tariffs on products from the European Union is described as a “worry” for the sport horse industry in Ireland.

Donald Trump announced a raft of tariffs on Wednesday evening on goods imported to the US from overseas. While the tariffs are set to take effect on April 9th, it is still unclear if they apply to horses or not, or if breeding stock (mares and stallions) would be exempt.

The Minister for Agriculture, Martin Heydon, will be in Kentucky on a trade mission next week and it is hoped he will get more details on how the tariffs will be applied. There was no immediate response from the Department on whether the tariff will be applied to horses.

Alison Corbally, Director General of the Irish Horse Board, said the industry must wait and see what the potential impacts will be on horse sales. “As with all industries, it will take some time before we can see the full impact of the new US tariffs and how the situation will develop over the coming months, and we are linking with government officials in this regard,” Corbally told The Irish Field.

“Irish horses and Irish breeders have a long-standing excellent reputation in the USA, and it is not going to be straightforward for US clients to simply find the horses that they require in the short to medium-term from a non-European tariff-free source.

“Many sport horses currently being sold to the USA from Ireland are at the higher end of the market. These horses are in limited supply and in high demand around the globe, not just in the USA. However, it is now that the network of solid personal relationships with long-standing US customers needs to be maintained and fostered in the months ahead.

“In this regard, the Irish Horse Board have been working on strengthening existing partnerships and developing new markets around the globe, before these tariffs were proposed. It is also possible that the new US tariffs announced, may in fact open up new opportunities with countries who are now facing financial barriers to trade themselves with the USA.”

Big market

Ed Donohoe of Goresbridge Horse Sales said America is a big market for the Kilkenny-based auction house and he fears the producers would suffer if the proposed tariffs are introduced.

“America was a market that I specially went after last year because, with the internet and our online bidding platform, there has been more and more Americans buying horses and we have developed strong relationships and regular customers. We have spent a few quid there in the last year with advertising and sponsoring fences at international events. It’s a very important market for us, particularly for the event horses.

“Nearly a quarter of horses sold at last year’s Go For Gold sale, which is our premier sale, went to the US. The sale-topper at our last sale in March [€38,000 for MBF Fortuna] went to America and five or six horses in the last ordinary sale also went to the US. So, it is certainly a worry.

“At the end of the day, the Irish horse is at the top of the world rankings for eventing and that will continue, Americans will still buy Irish horses but it’s creating a negative feeling towards the whole industry and, ultimately, the tariffs will be reflected in the price that is going back to the producer.

“It is a worry that we don’t know what will happen. We hope we might be exempt but it’s not looking likely,” Donohoe added.

Challenge

Connolly’s Red Mills has their three brands – the flagship Red Mills feed, as well as Carr, Day & Martin and Foran Equine – readily available in the USA in retail stores and at equestrian venues. CEO of the family business, Gareth Connolly, said he was monitoring the situation keenly.

“Particularly on the sport horse side, it is a very important market for us as we have a lot of international customers travelling to and around the USA who want to stay on the feed. It is a crucial part of our business to be able to go wherever the customer goes.

“The tariffs have the potential to have a significant knock-on effect and 20% will be a challenge to deal with. We are watching carefully and waiting for the full confirmation.

“As a family business, we will try and take the longer-term view, we are not going to let anybody down whatever the tariffs end up being.”