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 ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and renewed negotiations with Washington.
The association 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 heavy equipment used in 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.
McGuire said every tariff, whether imposed by Washington or by Ottawa, adds cost at each crossing. Those costs, he added, are paid by farmers, contractors and municipalities, and ultimately by Canadian families.
AED said it was disappointed in August that the two countries could not reach a trade agreement and 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, urging 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, while AED Canadian board member Brian Osterndorff presented the association’s case to the Senate of Canada.
McGuire said the association’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 said it aims to ensure Canadian decision-makers have the facts about what is at stake and to encourage efforts to get both governments back to the table.
Recommendations
AED’s recommendations include:
- Seek tariff certainty and sector-specific relief. Pursue exemptions and clarified tariff relief for the heavy equipment industry in CUSMA discussions, and use diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation that targets equipment. AED said tariffs and retaliatory tariffs on industrial goods hit Canadian farmers, contractors and resource producers first, and any Canadian response should be carefully targeted so it does 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, according to the association.
- Work with industry and labour. Assess the full impact of tariffs and develop contingency measures that safeguard Canadian jobs and investment.
- Build resilience at home. Advance critical infrastructure and support skilled trades training so Canadian industries can invest with confidence.
McGuire also said that when customers cannot count on stable prices and stable trade rules, they delay purchases. Those delays, he said, reduce work for technicians and hold back projects Canada needs, from housing to critical minerals to food production.
According to McGuire, 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 heavy equipment as an enabling industry and said AED is ready to partner with government.