The Impact of Tariffs on Canada’s Equine Industry

How tariffs affect Canada's equine industry, understanding horse industry tariffs, horse export rules to the USA, tariff rules regarding horse import, Canada’s retaliatory trade tariffs, understanding horse tariffs on equine industry

Updated:

March 12, 2025

By Kathy Smith

On March 4, 2025, the United States introduced a 25 percent tariff on all Canadian goods entering the country. While its implementation has been postponed until April 2, this measure, if enforced, has sparked concerns across the Canadian equine industry, particularly among breeders, racers, and businesses that rely on cross-border trade for sales, breeding, and competition purposes.

To assist horse owners and industry members in navigating these changes, the Canadian Thoroughbred Horse Society (CTHS) and Standardbred Canada (SC) have been working closely with the Ministry of Agriculture and Agri-Food Canada and Customs brokers.

Standardbred Canada has provided the following information to members regarding impending tariffs:

On March 4, 2025, the United States enacted a 25 percent blanket tariff on all Canadian goods entering the country. While the measure has been tabled until April 2, if implemented, it will apply to purebred breeding and racing animals, including live horses, each time they cross the border.

To help horse people understand the impact of these tariffs on the Canadian racehorse industry, the Canadian Thoroughbred Horse Society (CTHS) and Standardbred Canada (SC) have obtained information from the Ministry of Agriculture and Agri-Food Canada and our border broker network. While the situation remains fluid and details are still emerging, we will continue to provide updates as new information becomes available.

Exporting to the US

Mares for Breeding — If the mare was born (“originated”) in the US, the tariff does not apply.

If the mare was born (“originated”) in another country, the tariff applies and must be paid upon entry into the US.

A Temporary Entry permit is available for 30 days from the date of crossing. This requires cash to secure a bond equal to the tariff value, and the owner must provide proof of the mare’s value. If the mare returns to Canada within 30 days, the owner can request a refund of the bond from the US government. However, proof of re-entry — such as a border services date stamp — will be required.

If the mare is accompanied by a foal born in Canada, the foal will also be subject to the 25 per cent tariff or require a separate Temporary Entry permit if returning to Canada within the 30-day period.

Horses for Sale and Racing – If the horse is intended to be sold in the US at auction or by private sale and was born in the US (“originated”) the tariff would not apply.

If the horse was born (“originated”) in Canada, the tariff applies and must be paid upon entry into the US.

A Temporary Entry permit is available for 30 days from the date of crossing. This requires cash to secure a bond equal to the tariff value, along with proof of the horse’s value.

If the horse is not sold and returns to Canada within 30 days, the owner can request a refund of the bond from the US government. However, proof of re-entry — such as a border services date stamp — will be required.

Importing Into Canada

In response to the US tariffs, Canada has announced retaliatory tariffs affecting approximately $30 billion worth of goods imported into Canada. While the initial round of tariffs did not apply to purebred breeding and racing animals, including live horses, it is likely that future rounds may include such tariffs, mirroring those imposed by the US.

The Ministry of Agriculture and Agri-Food Canada has indicated that purebred breeding animals (including live horses) could be included in a second round of tariffs. A complete list of affected goods is available here.

Currently, a public comment period is underway for these proposed countermeasures, and feedback is being accepted. Industry stakeholders can offer feedback through this form and request an exemption to the Canadian tariffs for purebred breeding and racing animals.

Broader Impact on the Equine Industry

While breeding and racing horses are directly affected by tariffs, Canada’s retaliatory trade measures will impact essential equine products. Items such as saddlery, harnesses, feed supplements, and general equine care supplies sourced from the US and subject to a 25 percent tariff will lead to potential shortages and rising costs for horse owners, retailers, and industry suppliers.

Saddlery and harness imports, valued at approximately $20 million in 2024, will cost significantly more, impacting tack shops, wholesalers, and equestrian businesses. Many horse supplements rely on US-sourced ingredients, creating uncertainty around pricing and availability.

Some Canadian retailers seeking alternative suppliers from Europe and other markets are finding differences in product standards and costs, which pose challenges.

Inflation and declining farmland availability have already increased financial strain on Canada’s horse owners. The additional burden of tariffs exacerbates affordability concerns, affecting overall industry participation.

Retailers and wholesalers are considering reducing inventory of US-made equestrian products or shifting to alternative manufacturers, but adapting supply chains takes time and may not fully offset the impact.

Ongoing Updates & Industry Support

The full impact of these tariffs on the Canadian horse industry remains uncertain. However, Standardbred Canada (SC) and the Canadian Thoroughbred Horse Society (CTHS) are actively monitoring the situation, collaborating with industry leaders and government representatives to keep stakeholders informed.

Key Recommendations for Industry Members:

Utilize professional carriers or a US Customs broker when transporting horses to ensure compliance and minimize delays at the border.
Stay informed by following updates from SC, CTHS, and government sources regarding tariff developments and industry-specific guidelines. Review the information at the following link: Notice of Intent to Impose Countermeasures in Response to United States Tariffs on Canadian Goods - Canada.ca
Participate in the public comment period to advocate for exemptions and provide feedback. Input on tariff measures should be provided by completing this form.
Prepare for potential cost increases if further retaliatory tariffs include live horses or additional equine-related goods.
Diversify suppliers to safeguard against product shortages in saddlery, feed, and other essential equine-related imports.
As more details emerge, SC and CTHS will continue to share updates and provide guidance to help industry members navigate these challenges. Stakeholders are encouraged to share insights and experiences, ensuring the industry remains informed and prepared for potential changes.