CTHS Applauds Continued Duty-Free Status Under Revised U.S. Tariff Orders

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 Trumps 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)

P: (416) 675-1370

E: info@cthsnational.com

Members Notice Regarding Impending Tariffs     March 12, 2025

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

To help members understand the impact of these tariffs on the Canadian Thoroughbred industry, the CTHS has received documentation 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 U.S.

Mares for Breeding 

• If the mare was born (“originated”) in the U.S., 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 U.S.

• 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 U.S. 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% tariff or require a separate Temporary Entry permit if returning to the Canada within the 30 day period.

Horses for Sale and Racing

• If the horse is intended to be sold in the U.S. at auction or by private sale and was born in the U.S. (“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 U.S.

• 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 U.S. government. However, proof of re-entry — such as a border services date stamp — will be required.

IMPORTING INTO CANADA

In response to the U.S. 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 U.S.

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 potentially affected goods is available here.

Currently, a 21-day public comment period is underway for these proposed countermeasures, with feedback accepted until March 25, 2025. We strongly encourage all industry stakeholders to submit their input through this form and request an exemption to the Canadian tariffs for purebred breeding and racing animals.

Ongoing Updates & Industry Support

At this time, we do not have definitive confirmation of the full implications of these tariffs for the Thoroughbred industry. The CTHS will remain in close contact with industry stakeholders and government representatives to obtain the most accurate and up-to-date information.

The CTHS strongly advises all members crossing the border to utilize the services of a professional commercial carrier or a U.S. Customs broker to ensure compliance with regulations and facilitate a smooth entry process.

We recognize the financial and logistical challenges these tariffs may impose and will continue to provide updates as more concrete details become available. In the meantime, we appreciate your patience and encourage members to reach out if you have relevant information, insights, or experiences related to this issue.

For further inquiries or to share your feedback, please contact the CTHS National Office: 

P: (416) 675-1370

E: info@cthsnational.com