Although I promised to continue the series on the greatest horsemen of local racing over the last 70 years, it has to wait. The economic circumstances of the world have changed since Donald John Trump returned to the presidency of the United States. Obviously, the horseracing industry will not be immune to the negative effect of his policies. The implementation of these has engendered a disastrous social and economic beginning to this second term as he succeeds Joseph Robinette Biden Jr as the 47th occupant of the White House.

In less than 80 days since his inauguration, Trump’s domestic and foreign policy initiatives has already had an incredibly negative impact on the US economy. In terms of a response by investors, the stock market racked up losses, with consumer confidence taking a significant dent as well. These are major indicators of devastating economic uncertainty and security concerns, both domestic and international. Trump, in his ignorance of the nuances of modern economics and supply chain dynamics, is determined to take America backwards with his insistence on imposing unresearched and previously failed tariff measures on foreign imports.

The Trump Administration has taken a decision to downsize the Federal Government and thereby facilitate more tax breaks for the richest less than five per cent of the US population. As things stand, this is being met with resistance at all levels nationwide.

Then there is an ongoing cost-cutting measure in a redundancy exercise without due process, affecting hundreds of thousands of federal employees. Naturally, the profound naiveté of Trump’s administrators as to how staff audits are conducted is facing legal challenges and political backlash already. The unfair and cruel treatment of immigrants, mainly black and brown, even with legal status and rights guaranteed by the US Constitution, is now under racially induced attack.

Federal workers, an educated cohort, who value travel and vacation time, are in the medium- to high-income earners and, therefore, as a substantial portion of the global hospitality clientele is now suddenly without immediate employment.

As it relates to Jamaica, what is the economic implication of this unprecedented naïve and reckless approach to US governance? The dreaded vacation cancellations now exists in reality and have begun to force the providers of hospitality across the Caribbean and elsewhere on the globe to revise their projection for inflows of revenue over the next three quarters and even beyond.Any downturn in the US economy is certain to have a debilitating impact on the developing economies that rely heavily on the hospitality industry and trade generally.

Horseracing is not an essential activity, with survival based purely on unprofitable volunteerism as far as investment in the breeding and ownership of thoroughbreds is concerned. Over the last three decades, the sport has not flourished in the United States. Gaming on other sporting promotions has increased exponentially. This enabled by a new legal gaming status in 38 of the 50 states but has left racing with its flawed claiming system unable to take advantage of this revolution.

In the United States, the 1992 breeding sheds delivered 35,051 foals, which, by the end of 2023, declined to 17,200. Naturally, over roughly the same 30-year period, the number of races also fell precipitously from 70,393 to 30,852 by the end of 2024. With a population of 255 million in 1992, the handle was US$9.639 billion, but inevitably, in 2023, although US inhabitants stood at 347.5 million, the handle was at US$11.689 billion. The new US population has little or no interest in the horse racing industry, with the 96-year-old claiming system too complicated to comprehend.

The future of the Jamaican racing industry is now interlinked to the fortunes of the US, and here is why: There is no question that with a weak and stagnant local product, the promoting company’s, Supreme Ventures Racing & Entertainment Limited, continued viability is dependent on the simulcast revenue stream. This exceeded $4.0 billion in 2023, and the willingness of owners to operate at a deficit in purses also enables the industry to remain alive.