The Associated Equipment Distributors (AED) used its annual advocacy day to call on the Canadian government to put free and fair trade with the United States at the center of the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and the renewed negotiations with Washington.
The association argued that an integrated North American economy works for the equipment sector, while tariffs on either side of the border raise costs for farmers, contractors, miners and builders that Canada relies on for growth. AED's message focused on the cross-border nature of the machinery used in construction, mining, agriculture and infrastructure.
Brian P. McGuire, AED president and CEO, said equipment that builds 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. Those costs, he said, are ultimately paid by farmers, contractors and municipalities, and then by Canadian families.
Advocacy expands on both sides of the border
AED said it was disappointed in August that the two countries could not reach a trade agreement and has since increased its advocacy in Canada and the United States. 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 have also met with more than 100 members of the U.S. House and Senate, while AED Canadian board member Brian Osterndorff recently 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 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 is encouraging both governments to return to negotiations.
He also linked trade stability to purchasing decisions. When customers cannot rely on stable prices and stable trade rules, McGuire said, they delay purchases. Those delays reduce work for technicians and hold back projects Canada needs, including housing, critical minerals and food production, he added.
Five recommendations for Canadian negotiators
AED outlined a set of recommendations for the CUSMA discussions and Canada's broader trade response:
- Seek tariff certainty and sector-specific relief. AED wants exemptions and clarified tariff relief for the heavy equipment industry, and it called for diplomatic channels to be used to prevent new tariffs on equipment and components.
- Avoid retaliation that targets equipment. Tariffs and retaliatory tariffs on industrial goods fall first on Canadian farmers, contractors and resource producers, according to AED. 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, AED said.
- Work with industry and labour. The association recommended assessing the full impact of tariffs and developing 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 work with government as a partner.