The Canadian Thoroughbred Horse Society, which represents breeders of Thoroughbreds across the country, issued the following letter to members on April 3.
On Wednesday, April 2nd, President Donald J. Trump announced a sweeping update to the United States’ global tariff structure, aimed at enhancing national and economic security. Among the updates, thoroughbred industry stakeholders received positive news: horses eligible under the USMCA (United States-Mexico-Canada Agreement) will continue to cross the U.S.-Canada border duty-free.
The announcement came via the White House’s release of the Fact Sheet: President Donald J. Trump Declares National Emergency to Increase Our Competitive Edge, Protect Our Sovereignty, and Strengthen Our National and Economic Security. You can read the full document here.
As outlined in the fact sheet:
“For Canada and Mexico, the existing fentanyl/migration IEEPA orders remain in effect, and are unaffected by this order. This means USMCA-compliant goods will continue to see a 0% tariff…”
Under the USMCA, Thoroughbred horses (classified under Codes 0101.21.00 for pure-bred breeding animals and 0101.29.00.20 for others used for racing) retain their status as duty-free goods, ensuring uninterrupted cross-border movement vital to the industry.
In response, Prime Minister Carney has announced that the Government of Canada will be responding to President Trump’s tariff orders by matching the U.S. approach with a 25% tariff on all vehicles imported from the U.S. that are not compliant with USMCA. There being no reference to any other counter tariffs, this would indicate that Canada, like the U.S., will maintain the status quo as it relates to the USMCA agreement.
This is exceptional news for our community. The continuation of duty-free transport recognizes the long-standing and mutually beneficial relationship between Canadian and American thoroughbred breeding and racing operations.
We would like to extend our sincere thanks to the many industry members, organizations, and government officials in both countries who voiced the importance of this issue. Your dedication and collaboration were instrumental in protecting the interests of our cross-border industry.
We also express our deep appreciation to U.S. businesses and officials who engaged with our concerns and understood the economic and cultural significance of our thoroughbred trade.
Please Note:
Continue to carry appropriate documentation when transporting horses, including proof of foaling location (USA or Canada).
If you encounter any issues at the border, please notify us immediately so we can provide support.
We will continue to monitor developments closely and we will keep our members informed of any changes.
With appreciation,
The National Board of Directors
Canadian Thoroughbred Horse Society (CTHS)
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