Associated Equipment Distributors (AED) marked its annual advocacy day by calling on the Government of Canada to make free and fair trade with the United States a top priority, both in the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and in the renewed negotiations with Washington.
The association's central argument is that an integrated North American economy works, and that tariffs applied on either side of the border raise costs for the farmers, contractors, miners and builders Canada is counting on to grow the economy.
"The equipment that builds Canada is built, sourced and serviced on both sides of the border. Many components cross the border several times before a machine ever reaches a customer," said Brian P. McGuire, AED president and CEO. "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 in the end by Canadian families.
Advocacy on both sides of the border
AED said it expressed disappointment in August that the two countries could not reach a trade agreement, and has since stepped up its advocacy in both countries. 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, and AED Canadian board member Brian Osterndorff recently presented the association's case to the Senate of Canada.
"Our resolve remains strong," McGuire said. "Equipment dealers and manufacturers in both countries agree on one thing: free and fair trade is the best path to prosperity for the sectors we serve." He said AED aims to make sure Canadian decision-makers have the facts about what is at stake and to encourage efforts to bring both governments back to the table.
McGuire also linked trade stability to purchasing behaviour, warning that when customers cannot count on stable prices and stable trade rules they delay purchases, and that such delays cost technicians work and hold back projects Canada needs, from housing to critical minerals to food production.
Five recommendations
- Seek tariff certainty and sector-specific relief. Pursue exemptions and clarified tariff relief for the heavy equipment industry as part of the CUSMA discussions, and use all diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation that targets equipment. Tariffs and retaliatory tariffs on industrial goods hit Canadian farmers, contractors and resource producers first; 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. 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 tied those points to the sectors the government is relying on. "The sectors governments are relying 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 said. "This is an enabling industry, and we are ready to be a partner to government."