Understanding the Impact of the U.S. 25% Tariff on Canadian Horses

The Canadian Equine industry is facing a significant challenge with the impending implementation of a 25% blanket tariff on all Canadian goods entering the United States, including breeding and show horses. While this measure was announced on March 4, 2025, it has been tabled until April 2, 2025. If enacted, the tariff would apply each time a Canadian horse crosses the border into the U.S.

To help breeders, owners, and industry members understand how this could affect them we have reviewed documentation from the Ministry of Agriculture and Agri-Food Canada and its border broker network. While details are still emerging, here are the key points you need to know.

Exporting Canadian Horses to the U.S.

• U.S.-born mares: The tariff does not apply.
• Canadian or foreign-born mares: The tariff applies and must be paid upon entry.
• Temporary Entry Permit (30 days): Owners can secure a bond equal to the tariff value (cash required) and may apply for a refund if the mare returns to Canada within 30 days. Proof of re-entry (such as a border services date stamp) is required.
• Canadian-born foals traveling with the mare are also subject to the 25% tariff unless they obtain a separate Temporary Entry permit.

• U.S.-born horses: The tariff does not apply.
• Canadian-born horses: The tariff applies and must be paid upon entry.
• Temporary Entry Permit (30 days): Owners must secure a bond equal to the tariff value and provide proof of the horse’s value.
• If the horse is not sold and returns to Canada within 30 days, the bond can be refunded—but proof of re-entry is required.

Importing U.S. Horses into Canada

In response to the U.S. tariffs, Canada has announced potential retaliatory tariffs affecting approximately $30 billion worth of U.S. goods. While the first round does not currently include breeding and show horses, future rounds may mirror the U.S. tariffs and apply similar restrictions.

The Ministry of Agriculture and Agri-Food Canada has indicated that breeding horses could be included in the second round of tariffs.

A 21-day public comment period is currently underway, with feedback accepted until March 25, 2025. Industry members are encouraged to submit their input and request an exemption for breeding and show horses.

What’s Next?

The situation remains fluid, and updates will be provided as more information becomes available. If you are involved in breeding, selling, or showing horses across the U.S.-Canada border, it’s crucial to stay informed and prepare for potential financial and logistical impacts.

For now, we strongly encourage all industry stakeholders to submit feedback to the Canadian government using this form and advocate for an exemption on breeding / show horses.

Stay tuned for further developments as this issue unfolds.