The Associated Equipment Distributors (AED) used its annual advocacy day to urge the Canadian government to put free and fair trade with the United States at the centre of the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and renewed negotiations with Washington.
The association argued that an integrated North American economy works and that tariffs on either side of the border raise costs for farmers, contractors, miners and builders that Canada depends on for growth.
AED said equipment used to build Canada is built, sourced and serviced on both sides of the border, and that many components cross the border several times before a machine reaches a customer.
Brian P. McGuire, AED president and CEO, said each tariff imposed by Washington or Ottawa adds cost at every crossing. Those costs are ultimately borne by farmers, contractors, municipalities and Canadian families, he said.
Advocacy expands on both sides of border
AED said it was disappointed in August when the two countries could not reach a trade agreement, and has since increased advocacy in both countries. 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 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.
McGuire said AED'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. He said AED wants Canadian decision-makers to have the facts about what is at stake and to encourage efforts to bring both governments back to the table.
He also linked trade stability to purchasing decisions and project delivery. When customers cannot count on stable prices and stable trade rules, they delay purchases, McGuire said. Those delays can reduce work for technicians and hold back projects Canada needs, including housing, critical minerals and food production, he added.
Recommendations focus on tariffs and supply chains
AED made several recommendations as part of its advocacy:
- Seek tariff certainty and sector-specific relief. AED wants exemptions and clarified tariff relief for the heavy equipment industry in CUSMA discussions, and wants all diplomatic channels used to prevent new tariffs on equipment and components.
- Avoid retaliation that targets equipment. The association said 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.
- Set 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. AED called for an assessment of the full impact of tariffs and for contingency measures to safeguard Canadian jobs and investment.
- Build resilience at home. The association urged progress on critical infrastructure and support for 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 and said it is ready to be a partner to government.