Why Donald Trump's tariffs are causing big concerns in the breeding world

Leading US trainer Kenny McPeek admits President Trump's announcement of tariffs on imports makes it a worrying time for Americans who buy horses from abroad.

He won last year's Kentucky Derby with locally bred Mystik Dan but has also enjoyed a lot of success with horses bought in Europe and fears the effect of the imposition of a ten per cent charge on imports from Britain and 20 per cent from the European Union.

But McPeek, one of only five living trainers who have won all three US Triple Crown races, also revealed he is looking into buying a yard in Newmarket, which could potentially circumvent the extra cost.

Speaking at Meydan about the imposition of tariffs, he said: "It does worry me. It’s going to change the dynamic of how we handle Tattersalls and Arqana sales.

Kenny McPeek: "It does worry me"Credit: David Carr

"I really enjoy working the Tattersalls and Arqana sales. I bought three stakes winners from Arqana and I bought only seven horses in total. Freydis The Red made about $700,000 and we spent only €125,000 on her. I bought four at book two at Tattersalls last year. 

"But I’m a middle- lower-market guy, I don’t believe in throwing money at it. If you’re paying at the huge end of the market it will really hurt. If you’re paying 100,000 dollars or euros it’s not too painful."

McPeek also pointed out that US horses are already hit by tariffs if they are sold to South America.

"They charge a huge tariff for the importation of horses," he said. "Brazil has a 50 per cent tariff from the US so maybe the decisions the president is making are correct, maybe it levels that out." 

He hopes to find a way to continue buying European bloodstock and said: “I’m not sure what the math would be, if we maybe have to leave horses in Europe longer after we purchase them. We’ll have to see. If we leave horses in Europe do we then have to pay VAT? It’s kind of a Catch-22.

“I think we’ll find a way. I’m not sure how it will unfold but the thoroughbred is an international product – the bloodlines run through whether they’re English horses, Kentucky, Australian, Japanese."

And McPeek, whose elder daughter is a teacher in Sheffield, revealed he is considering expanding and having a yard in Newmarket.

"I have one farm in Kentucky, one in Florida and I have this base of clients that's massive right now," he said.

"If I could come over to Tattersalls and Arqana, why not buy 20 or 30 and base them in Newmarket? It would just be a matter of setting up a team – I already run six divisions so what's seven?"

Now read these...

'He's got a super chance' - Saffie Osborne eyeing historic victory at Saturday's Dubai World Cup meeting 

Top Japanese stars in line for trip to Britain as connections target York's Juddmonte International 

'He’s the one I’d want to be on' - dual Grand National winner marks your card for Saturday's big race 

Looking for free bets? Racing Post have got the best offers, all in one place. Visit racingpost.com/freebets to find out more.