While Canada and Mexico imports got a reprieve from the new tariffs implemented this month by the Trump administration, horses imported from all other countries to be sold in the United States will still feel the full brunt of the charges.
A base 10% tariff applied to more than 200 countries will take effect April 5 and additional tariffs were announced by President Donald Trump that vary by country and will go into effect April 9.
Trump announced that Canada and Mexico will continue to be subject to the 25% tariffs they had been previously but also said an exception for goods compliant with the United States-Mexico-Canada trade agreement to remain duty-free will stay in place. Purebred breeding animals and others used for racing are covered by the trade agreement, so are not subject to the tariffs.
According to the National Thoroughbred Racing Association, there are conditions by which horses bred outside of North America can enter the U.S. for extended periods temporarily without paying duties. Horses imported for the purpose of breeding, exhibition, or competition for prize can be admitted under a temporary import bond for exportation within one year from the date of importation, which may be extended up to a total of three years.
The NTRA added that Thoroughbred industry professionals need to continue operating under current Customs and Borders guidelines with the caveat that these guidelines could change. Anyone with questions is encouraged to contact the Customs and Border Patrol's Agriculture & Prepared Products Center at cee-agriculture@cbp.dhs.gov or by calling (866) 295‐7624, code 02.
For sales horses sent to the U.S. from a European Union country, such as Ireland or France, the new tariffs will be 20%. An NTRA fact sheet notes the EU tariff is 10% until April 9 when an additional 10% tariff goes into effect. Horses being imported from the United Kingdom, which broke away from the EU, are subject only to the 10% tariff.
While significant trade exists between Japan and South Korea, the trade is largely one-sided with the bulk of American horses being sent overseas. The new tariffs will provide even less incentive for horses, particularly those bred in Japan, to be sold in the U.S. After April 9, the tariff for horses bred in Japan and sold in the U.S. will be 24%. The tariff for horses bred in South Korea will be 25%.
The tariffs are less onerous for horses bred in Australia or South America. For horses bred in Australia, Argentina, Brazil, or Chile, the exporter will be required to pay a 10% tariff.
It should be noted that the tariff is paid at the time a horse is imported based on a fair market value, according to the NTRA. So if a horse is valued at $100,000 when it crosses the border into the U.S., this is the value on which the tariff is levied. If the horse goes on to sell for $300,000, no additional tariff will be charged.
