Tariffs Complicate but Don’t Stop Buyers at Tattersalls

The recently completed Tattersalls October Yearling Sale was one of the most attended editions by American buyers. Book 1 of the sale was also among the most active editions based on dollars spent and head bought. The sale concluded Oct. 17.

But factors in the United States beyond racing considerations impacted some of the calculus used in deciding what happens with some of the yearlings purchased in Newmarket, England. 

Alex Solis, who was at the sale representing several buyers, said some of the horses he successfully bid on will stay in Europe because of the tariffs imposed by U.S. President Donald Trump. 

“I would say the tariffs are the biggest problem,” Solis said. “If you’re buying a horse from Ireland or France, it’s 15%, 10% from England. And for us, that’s why we’re going to France. We can break them, get them going, race a year, and figure what we have.”

Determined Stables’ Matt Dorman was very active during the three-day Book 1. He spent $4,183,852 on seven fillies with the intent of bringing them back to the States so that they can race and eventually be part of his burgeoning broodmare band. 

“I think Thomas Friedman was right, where the world is flat,” Dorman said. “I think, unfortunately, certain political leaders are trying to change that. And I’m a finance guy. I believe in free markets. I’m not a big fan of tariffs. We’ll make the most of what we have.”

For Dorman, the tariffs led to an additional expense of approximately $557,237. 

For others, it’s not as much about the tariffs but the value of the dollar. 

Liz Crow said she feels like the dollar has weakened in recent years compared to the guinea. She called it “a little bit alarming” when you look up on the board in the sales ring at Tattersalls and see how many dollars are being spent in relation to the guinea.

“Sometimes you’re like, ‘Wow, 180 guineas is actually quite a bit of U.S. dollars,'” Crow said, adding that she still saw a lot of value buys during the sale including her purchases. 

As of Oct. 20, 1 guinea is worth $1.41 and a pound is worth $1.34 compared to $1.37 and $1.30, respectively, a year earlier. One euro was worth $1.08 a year ago; now it is $1.17.

Solis said that in 15 years of coming to Tattersalls, he is used to market fluctuations.

“I been doing this a long enough period of time, I don’t even think about it,” he said. “Another way to think is a year and a half ago, two years ago, it was parity to the euro, almost. It was never parity to the pound. And so the pound was, if you look at it from last year, it was a $1.17 to the euro right now. And last year was on parity. So we’re up 17% for the euro now. But the pound, I think we’re up 2%. In the last year, the pound hasn’t changed. The Euro has gone up 17%.”

At the end of the day, it comes down to the horse. And those buying in Newmarket loved what they saw.