The Associated Equipment Distributors (AED) used its annual advocacy day to call on the Government of Canada to make free and fair trade with the United States a top priority during the review of the Canada-United States-Mexico Agreement (CUSMA) and in renewed negotiations with Washington.
The equipment dealers' group 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 to grow the economy.
AED President and CEO Brian P. McGuire said equipment used to build Canada is manufactured, 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 every tariff, whether imposed by Washington or Ottawa, adds cost at each crossing, and those costs are paid by farmers, contractors, municipalities and ultimately Canadian families.
AED said it was disappointed in August when the two countries could not reach a trade agreement and has since increased its 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 have also met with more than 100 members of the U.S. House and Senate, and Canadian board member Brian Osterndorff recently presented the group'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 path to prosperity for the sectors they serve. AED aims to ensure Canadian decision-makers have the facts about what is at stake and to encourage both governments to return to the table, he said.
He also warned that when customers cannot count on stable prices and stable trade rules, they delay purchases. Those delays reduce work for technicians and hold back projects Canada needs, including housing, critical minerals and food production, according to McGuire.
Industry recommendations
- Seek tariff certainty and sector-specific relief by pursuing exemptions and clarified tariff relief for heavy equipment during CUSMA discussions, and use diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation that targets equipment. Tariffs and retaliatory tariffs on industrial goods hit farmers, contractors and resource producers first, so any Canadian response should be carefully targeted and should not penalize the equipment Canadians use to build and produce.
- Establish clear, predictable rules for critical components. Engine parts, safety electronics and other specialized inputs often have no practical alternative supplier outside North America.
- Work with industry and labour to assess the full impact of tariffs and develop contingency measures that safeguard Canadian jobs and investment.
- Build resilience at home by advancing critical infrastructure and supporting skilled trades training so Canadian industries can invest with confidence.
McGuire said the sectors governments rely 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 that is ready to partner with government.