The Associated Equipment Distributors (AED) used its annual advocacy day to urge the Government of Canada to put free and fair trade with the United States at the centre of the ongoing Canada-United States-Mexico Agreement (CUSMA) review and renewed negotiations with Washington.
AED said an integrated North American economy works, while tariffs on either side of the border raise costs for farmers, contractors, miners and builders that Canada relies on for growth. The association's message was that cross-border trade supports the equipment sector and the customers it serves.
Brian P. McGuire, AED president and CEO, said equipment used to build Canada is built, sourced and serviced on both sides of the border, and many components cross the border several times before a machine reaches a customer. He said each tariff, whether imposed by Washington or Ottawa, adds cost at every crossing, and those costs are ultimately paid by farmers, contractors, municipalities and Canadian families.
AED said it was disappointed in August when the two countries could not reach a trade agreement, and it has since increased advocacy on both sides of the border. In September, McGuire wrote to U.S. governors in states with significant exposure to Canadian trade, asking them to press for a return to the bargaining table. AED's U.S. members also met with more than 100 members of the U.S. House and Senate. Canadian board member Brian Osterndorff recently presented AED's case to the Senate of Canada.
McGuire said the group's resolve remains strong and that equipment dealers and manufacturers in both countries agree free and fair trade is the best route to prosperity for the sectors they serve. AED said it wants Canadian decision-makers to have the facts about what is at stake and to encourage both governments to return to the table.
He also linked trade stability to purchasing decisions. When customers cannot count on stable prices and stable trade rules, they delay purchases, McGuire said. Those delays reduce work for technicians and hold back projects Canada needs, including housing, critical minerals and food production, he added.
AED's recommendations
- Seek tariff certainty and sector-specific relief. AED wants exemptions and clarified tariff relief for the heavy equipment industry in the CUSMA discussions, and it supports using diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation aimed at equipment. Tariffs and retaliatory tariffs on industrial goods fall first on Canadian farmers, contractors and resource producers, according to AED. It said any Canadian response should be carefully targeted and should not penalize the equipment Canadians use to build and produce.
- Set clear rules for critical components. Engine parts, safety electronics and other specialized inputs often have no practical alternative supplier outside North America, AED said.
- Work with industry and labour. The group called for an assessment of the full impact of tariffs and for contingency measures that protect Canadian jobs and investment.
- Build resilience at home. AED urged progress on critical infrastructure and support for skilled trades training so Canadian industries can invest with confidence.
McGuire said the sectors governments are counting on to build housing, develop critical minerals, strengthen energy security and feed Canadians all depend on reliable access to equipment and integrated North American supply chains. He described the equipment industry as an enabling industry and said it is ready to be a partner to government.