The Associated Equipment Distributors (AED) has called 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 appeal came as part of the association’s annual advocacy day.
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 economic growth.
Cross-border production
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. According to McGuire, every tariff imposed by Washington or Ottawa adds cost at each crossing, and those costs are ultimately paid by farmers, contractors, municipalities and Canadian families.
AED said it was disappointed in August that 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, and AED Canadian board member Brian Osterndorff recently presented the association’s case to the Senate of Canada.
Recommendations
AED’s recommendations call for tariff certainty and sector-specific relief. The group wants exemptions and clarified tariff relief for the heavy equipment industry as part of CUSMA discussions, and it urges the use of all diplomatic channels to prevent new tariffs on equipment and components.
The association also opposes retaliation that targets equipment. It 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.
AED is seeking clear, predictable rules for critical components such as engine parts and safety electronics, which it says often have no practical alternative supplier outside North America. It also wants government to work with industry and labour to assess the full impact of tariffs and develop contingency measures that safeguard Canadian jobs and investment.
On domestic resilience, AED recommends advancing critical infrastructure and supporting skilled trades training so Canadian industries can invest with confidence.
Purchasing decisions
McGuire said that when customers cannot count on stable prices and stable trade rules, they delay purchases. He added that delayed purchases reduce work for technicians and hold back projects Canada needs, from housing to critical minerals to food production.
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 and said it is ready to be a partner to government.
McGuire said the association’s resolve remains strong, adding that equipment dealers and manufacturers in both countries agree free and fair trade is the best path to prosperity for the sectors they serve. He said AED 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.