By Kathy Smith

On April 2, 2025, U.S. President Donald Trump announced a significant expansion of global tariffs, stirring concern across industries with cross-border and international exposure — including the horse industry. However, a follow-up announcement on April 9 brought a degree of relief to many trading partners: Trump has authorized a 90-day tariff pause for over 75 countries that, according to the administration, are “negotiating in good faith and have not retaliated” against recent U.S. tariff hikes.

As part of the pause, reciprocal tariffs on those countries have been reduced to 10 percent for 90 days, while tariffs on China were sharply increased to 125 percent. Tariffs on Canada and Mexico remain unchanged, continuing under the framework of the Canada-United States-Mexico Agreement (CUSMA).

No Change for Canadian Horses and Breeding Products

Despite broader global shifts, the Canadian horse industry remains unaffected. Under CUSMA, horses and breeding materials — such as semen and embryos — continue to move tariff-free across the U.S.-Canada border. This exemption provides ongoing stability for breeders, trainers, and buyers who rely on frequent cross-border transactions.

What About Saddlery, Horse Trailers, and Other Equipment?

The tariff announcement once again raised questions about horse-related goods such as saddlery, harnesses, feed supplements, horse care products, tractors, and horse trailers. When these products are manufactured in Canada, the U.S., or Mexico, they typically qualify as CUSMA-compliant and are exempt from tariffs.

However, goods that are produced outside North America — for example, imported saddles from Europe — may not meet CUSMA’s rules of origin. If those items are routed through Canada or the U.S. but originate elsewhere, they can still be subject to the existing 25 percent tariff, which has not changed for Canada and Mexico.

For the more than 75 countries included in the tariff pause, the tariff has been temporarily reduced to 10 percent, giving importers a short-term reprieve that could provide cost savings, especially during this 90-day window. 

Broader Impact on Global Horse Trade

The international horse trade has become increasingly complex. Horses imported into the U.S. from non-CUSMA countries (like European nations) had already been subject to a 25 percent tariff, but those covered under the 90-day pause may now benefit from the temporary 10 percent rate, depending on country of origin. However, China now faces a steep 125 percent tariff, which is a significant blow to any equine exports or imports involving Chinese buyers or suppliers.

Conversely, U.S. horses exported to countries beyond Canada and Mexico may still face retaliatory tariffs, particularly from nations not covered by the 90-day pause. This could limit demand for American horses abroad, especially in competitive breeding and performance markets.

Key Takeaways

• Horses and breeding products traded between Canada and the U.S. remain tariff-free under CUSMA.
• Horse-related goods (e.g., saddles, trailers, care products) are tariff-exempt if made in North America and meet CUSMA’s rules of origin.
• Goods imported from non-CUSMA countries may still face tariffs unless covered by the 90-day pause, which lowers tariffs to 10 percent temporarily.
• Tariffs on Chinese goods were raised to 145 percent, significantly impacting equine-related trade with China.
• Canada and Mexico currently see no change in their tariff status — maintaining a stable environment for North American equestrian commerce.

In Conclusion

While the April 9 tariff announcement introduced new uncertainties in the global trade landscape, the Canadian horse industry remains protected under CUSMA’s umbrella. The newly authorized 90-day pause offers a temporary buffer for many horse-related imports from non-North American countries, easing some cost pressures. However, the steep tariff hike on China and the short-term nature of the pause underscore the need for vigilance and flexibility in the months ahead.

Equine businesses, importers, and exporters are advised to review their supply chains carefully and make strategic decisions during this 90-day window, while staying alert for further trade developments.

Related: The Impact of Tariffs on Canada’s Equine Industry

Photo: Shutterstock/Goami