How Will U.S. Tariffs Affect Americans Buying at Arqana?

[Wandering Eyes]

DEAUVILLE, FRANCE– When U.S. President Donald Trump made good on his threat to impose tariffs on countries around the world on August 1-including a 15% tax on goods coming into America from the European Union-markets across the world shuddered. In the bloodstock world, the first to be affected will be the Arqana August Sale, which starts this Saturday, August 16.

An Arqana-sponsored plane full of Americans arrived Wednesday morning from Saratoga, and the TDN spoke with some of those who came over, and others who stayed home, and international buyers who buy for Americans to see how it would affect not only their spending, but what they do with the horses after they buy them.

One thing was clear: the tariffs were on everyone's mind.

Deuce Greathouse is at Arqana buying for American interests, and said that the constantly changing nature of the tariffs, first threatened earlier in the year and then postponed only to come back at a different amount, didn't make it easy to make concrete decisions.

“They keep changing,” said Greathouse, “so we have kind of just been playing it by ear. But, I guess obviously it could make you a little more conservative in your purchase price. I guess all you can do right now is just kind of assume you're adding 15%, right? You try to factor it into the total price.”

“It's definitely a tricky situation,” said Ramiro Restrepo, one of the Americans on the Arqana plane. “We're all kind of lighting a candle that maybe Trump pushes it back somehow, but you still have to come out here and look at nice horses. You know that all these European sales companies are going to be delivering the goods as they do every year. So you have to do your job as a bloodstock agent and visit them and review the offerings. You have to come see, whether it's looking at the new freshman sires and how their yearlings look like, through what these amazing consignors are bringing to the table, because the results on the racetrack are still going to be there. You see constant success in America from European imports, and you do have to be here, but I think once everybody gets through their short lists and vet lists and speaks to their clients, then you have to sit down at the round table and make that decision.”

Ramiro Restrepo | Coady photo

Restrepo also said that the strength of the recent Saratoga sales could have a positive effect on the European sales by forcing buyers who were shut out in America to come over to Europe.

He said he saw new faces on the plane this year. “Eyes were bulging from the way that the market was booming in America. Is that going to continue into the European sales? Is that going to continue into the deeper books when you get back to America at Keeneland and Fasig October? It's going to be a very interesting year to see how it continues.”

Kenny McPeek has been a steady purchaser at Arqana for several years now, and like many Americans, isn't quite sure how it's going to shake out.

“Honestly, there's going to be a big learning curve on all of it,” he said. “It's going to depend on the market and what I see. I do think that it's going to lower my opportunities to purchase. I've bought eight horses out of this auction and had three stakes winners, so it's been good to me already. But yeah, this is definitely going to be a little bit of a struggle trying to figure it out.”

Ben Gowans is here with trainer Arnaud Delacour looking at horses for an American client, Mark Grier.

“We have come to the sale with him for the past two years,” said Gowans, who watched a filly they bought here for €340,000 in 2023, Evershed (Churchill) run second in the GI Saratoga Oaks this past weekend.

“Arqana does such a great job with the sale that it's a hard opportunity to pass up even with the tariffs,” said Gowans, adding that the intangibles played a part in their presence as well. “Mark loves the experience of coming here and he loves the atmosphere and all that Deauville has to offer. Of course, there was more consideration as to whether or not to come here this year with the tariffs being in place.”

But he agreed with Restrepo that the strength of the Saratoga market was a kind of tariff in its own right. “I guess I'll say that after seeing Saratoga last week, I'm sure we're not exactly getting good value over here, but I'm not sure it's as dramatic a difference. I think you could say horses had a markup at Saratoga, too, just naturally. The sale is so strong, and one in every seven horses sold for a million dollars. So I don't know. We're coming here with an open mind and hopeful to find a nice horse or two to bring back to America. And Mark's a lovely man who wants to support Arqana and he wants the experience of Deauville. So here we are.”

Ironically, as the tariffs are designed to be a protectionist measure for American companies, several American buyers said that they could cause them to redirect their purchases to be broken, trained, and raced in Europe instead of America, taking business away from service providers in the U.S.

Restrepo said those decisions would definitely come into play for him.

“We've left a couple of Irish purchases and French purchases here to train in the past, so maybe it'll affect just what we bring over and maybe not what we purchase overall. If they're going to stay here, they'll stay, and we're comfortable with that.”

Greathouse agreed.

“Every year when I have bought horses here, sometimes we leave them here and run them once or twice before we

bring them back. Sometimes we bring them back. So we'll probably wait and just feel out what all the indicators are and what they're telling us it'll be, and then make that decision.”

Justin Casse agreed, saying the destination of his purchases were “to be determined. It could be to stay in France, go to Ireland, even England. I'd say it's less likely that I'll send anything back to America, but there's always the possibility.”

And would the tariffs be a factor in his buying?

“I think it'll depend what the purpose is,” he said. “If it's to race, obviously, yes, it will be a conversation regardless. I think in any circumstance it's factored into what you're willing to pay. So for me, if we wanted to pay, for example, a hundred thousand for a horse, then maybe it becomes €85,000 or €90,000.”

In general, said Mark McStay, who buys in America and internationally for a global clientele, including Taylor Made's Medallion Racing, the tariffs have already become a factor, even before this sale.

“I've found the tariffs have most certainly been a factor in the private market in the States through the course of this year,” said McStay. “In many instances, both buyer and seller have needed to recalibrate their values in order to get business over the line.”

Resolute Racing's John Stewart had a major impact on the Arqana sale last year, buying the top lot on day one in 2024, a Wootton Bassett colt from the Etreham consignment for €1.4 million, will not be at Arqana, but it has nothing to do with tariffs, he said. “I am too busy with my private equity firm this week to make it,” he said. “We will be active at the November and December sales over at Tattersalls and Arqana.”

Like everyone, McStay said that he hoped that a resolution could be found to end the tariffs. Current litigation in the U.S. challenges Trump's right to use the International Emergency Economic Powers Act in order to pass the tariffs, a job which has always been up to Congress. The IEEPA gives the U.S. president the power to address “unusual and extraordinary” threats during national emergencies. The case claims that his use of the act was illegal, as no such emergency or threat exists, and it appears certain to be headed to the U.S. Supreme Court.

“Hopefully, this impediment can be overcome more readily in the future, as there's a definite and large appetite for the European turf horse in North America,” said McStay.

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