Although the endangered 25% flat -rate tariff for all Canadian goods that enter the United States, still weeks before the fulfillment of 25% owner -breed, suffer the alarm about the possible effects on their business and the wider industry in the country.
“It could be the end of the industry for us. Period, ”warned Yvonne Schwabe, the owner of Persley the Farms in Acton, Ontario, and the breeder of the Queen's Plate Plate winner midnight Aria from 2013.” This is the frightening part. “
As currently explained, the tariffs should come into force on April 2. In response to the flat -rate tariffs, the Canadian government threatened mutual tariffs with imported goods worth around 30 billion US dollars to Canada. While the initial round of retaliation tariffs did not apply to purebred breeding and race horses, future those may be reflected in the United States, since the Canadian thoroughbred horses are warned.
“It is that I send my horses to Kentucky early on and with their very sturdy US dollars for the board calculations with their very sturdy US dollar, as they can imagine, not a very good situation,” said Schwab, who expects to send nine of their 11 years to their ontario ownership to Kentucky before the performance.
“I have my own farm. I have my own staff. I have my own employees. For example, if I have to send my years before the deadline on April 2, how can I possibly afford to keep all of my employees? “Schwabe added.
Glenn Sikura, owner and operator of Hill 'n' Dale Farms in King City, Ontario, expressed concerns about several ambiguities about the proposed tariffs, including a possible 30-day permission for “ephemeral admission”.
According to the CTHS, the owners must, if a Canadian mare enter the USA, a bond corresponds to the tariff value. If the mare returns to Canada within 30 days, the owner can request a refund of the US government's bond. However, proof of the re -entry as a stamp for border services is necessary, ”the CTHS wrote in a dispatch on Wednesday.
Tom Rooney, President and Chief Executive Officer (CEO) of the National Thoroughbred Racing Association (NTRA), said his understanding of the situation is that the tariff according to the harmonized tariff plan of the United States is not correct if a horse lives in the United States.
Tom Rooney | NTA
Rooney reached on Thursday that he had not yet received an official clarification on this matter, but worked his office closely with civil servants in Canada to quickly correct the processes. “We have to do it right as soon as possible,” wrote Rooney. “There are undoubtedly millions of dollars on stallion fees and boarding, transport and veterinarian fees. The list continues. “
Sikura's Broodmare band a total of 15. Almost half is already in the United States. He plans to send three Canadian mares (possibly due to their tariffs), currently due to foals on his farm in Ontario, to US stallions this year. This is 130,000 US dollars of pen fees. His US bolt fees a total of around 500,000 US dollars a year, he said.
If it is indeed issued, the 30-day upper limit would be an almost impossible window to navigate after Canadian breeders who want to send their mares to a US stallion, given the moods of mares in the heat, the time it takes to guarantee pregnancy, and other bureaucratic obstacles, said Sikura.
“How can we possibly go down there and be back within 30 days? It is not possible and it is a bad attitude. So they extend every bond that they have, ”said Sikura, who is sitting on the CTHS, but emphasized that his comments are strictly his own.
In addition, the bond could primarily be a massive hurdle for some breeders – even if it is returned, Sikura said.
“I am a working guy. I did reasonably well. But where do I come tens of thousands of dollars to publish bonds on the border? “He said.
The following details can be found in the Wednesday counseling of the CTHS to its members:
Mares for breeding
If the mare was born in the USA (“origin”), the tariff does not apply.
If the mare was born in another country (“origin”), the tariff applies and must be paid for when entering the USA
A ephemeral entry permit is available for 30 days from the date of crossing. This requires cash to secure a bond that corresponds to the tariff value, and the owner must present the value of the mare. If the mare returns to Canada within 30 days, the owner can request a refund of the US government's bond. However, proof of the re-entry as a border service date is required.
If the mare is accompanied by a foal born in Canada, the foal is also subject to the 25% tariff or requires a separate ephemeral entry permit if it returns to Canada within the 30 -day period.
Horses for sale and run
If the horse is to be sold in the USA at an auction or private sale and was born in the USA (“origin”), the tariff would not apply.
If the horse was born in Canada (“origin”), the tariff applies and must be paid for when entering the USA
A ephemeral entry permit is available for 30 days from the date of crossing. This requires cash to secure a bond that corresponds to the tariff value together with the detection of the horse's value.
If the horse is not sold to Canada within 30 days, the owner can request a refund of the US government's bond. However, proof of the re-entry as a border service date is required.
Dave Anderson, the owner-breed and CTHS president based in Canada, said if the tariffs are actually enacted on April 2, “it is pretty simple-the entire industry in Canada.”
Every year Anderson breeds over 30 mares, all of which are covered by US stallions.
“If we cannot cross the border or if we are exposed to a tariff of 25%, these mares will simply not push across the limit. You will stay in Canada, ”said Anderson.
“This will certainly benefit the Canadian stallions and stallion nitures. But we just don't have enough good stallions to support these mares, ”he added.
Restricted cross-border trade would also have an impact that the US industry interest groups.
Last year, 157 Canadian years were registered in a US auction house, which achieved more than 7.6 million dollars of sales. According to the CTH, 36% of the Canadian foal harvest from 2023 were generated by the US stallions, which corresponds to a sum of almost $ 9 million for pen fees.
Then there is the possible effects on the cross -border traffic of runners.
According to CTHS, a 30-day “ephemeral entry permit” (similar to the bred mares) is available, which requires a bar lending that corresponds to the tariff value that is back with evidence of the re-entry.
But what if the horse, said Anderson, has to stay in the United States longer than this 30 days? And how, he added, is the value of a single horse calculated?
“Just because a horse is in disaster, for example, does not mean that it is worth $ 500,000,” said Anderson. “It could have [osteochondritis dissecans] OCDs stand in both pens and on three legs and it is worth 500 US dollars. But how do you explain that to a border broker? “He added.
Mark Casse | Unknown
The disturbed trade with runners would probably hit both directions. Mark Casse said Tdn If the tariffs come into force, he will probably send 40 to 50 horses to Woodbine this summer, in contrast to his usual 75 or so.
In a letter to the Canadian federal government on Thursday, the President and CEO of Woodbine, Michael Copeland, warned of the effects on race and breeding from retaliation duties – especially in view of the existing tariffs that come to Canada (such as feed, medication and other vital goods), in which Canada's breeders, trainers and owners in a “competitive disadium” the USA are in the United States.
“We are concerned about the potential of future tariffs for living horses, which would further destabilize the industry. The movement of horses because of border is of vital importance for breeding, races and sales, and additional trade barriers have grave economic consequences, ”wrote Copeland.
“Woodbine entertainment is firmly convinced that pure broken thoroughbred, standard and quarter horse horses that are used for breeding and racing purposes should be exempt from the implementation of the proposed countermeasures to the novel US tariffs for Canadian goods,” he added.
In Canada there is currently a 21-day public commentary period for the proposed countermeasures with a period of March 25th. “We encourage all interest groups in the industry to make their contributions via this form and to freed the Canadian tariffs for purebred breeding and racing animals,” wrote the CHS.
Rooney (formerly in Florida's 16th congress district) recommended that everyone should contact their local representatives with sturdy thoughts or concerns about tariffs.
“If you get enough people who call and really hurt the tariffs, talk to your leadership. Then talk about it in the committees. Then the people who go to the White House begin to speak to the people in the staff or even to the president themselves, ”said Rooney.
“That has an effect,” said Rooney. “It works.”
