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April 2025 Newsletter
- office21558
- Apr 25
- 2 min read
Top Trumps:
How has President Trump’s latest tariffs impacted the thoroughbred industry
The thoroughbred industry is worth around $35 billion to the United Sates, which is a significant, but not dominant slice of the $130 Billion pie that is the worldwide TB industry.
Trade within this industry will account for a small portion of this value, however is crucial to the development of the sport we all love.
The industry should be thought more of as a club, or collection of hobbyists rather than the true definition of goods-manufacturing and product trade.
The reason for this is that the ‘industry’ famously refuses to follow the trends others do worldwide. In times of hardship, war, or uncertainty, its performance has stunned market analysts, by both over and underperforming when least expected. I think part of this reason is down to what drives the industry which is a love of the sport. Where there is interest, goosebumps and joy, there is prosperity for the thoroughbred club we all live and breathe.
That being said, the effect of these tariffs is unknown, but most likely won't be a positive one. There is a special connection our sport fosters which crosses borders, seas, language and culture. Be it Ireland to the Sates, France to the UK, Hong Kong to Australia, the travel and trade of horses is integral to that.
Current tariffs sit at 10% for the UK and Australia, 20% for the rest of Europe (reciprocal), and 145% for China (US now recognising Hong-Kong as part of China’s economy).
Hong-Kong is especially reliant on the import of horses for its racing; therefore, it will be interesting to see whether they impose retaliatory tariffs on the US (Their decision to do so is separate from China). In the meantime, agents in the UK, Ireland, France, Australia and Japan will be making the most of this uncertainty from the situation.
When it comes to thoroughbreds, Ireland takes top spot for number and total value of horses exported to the USA, therefore these 20% tariffs are likely to hit hard. And since the majority of animals being sold to the states are high value individuals, the question is, who will take them instead? Will more and more look to go east? Or will they stay home but sell for less? Who knows, but only time will tell.
With thanks,
Archie and Team
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