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, both in the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and in the renewed negotiations with Washington. The request formed the centrepiece of the association's annual advocacy day.
AED's message was 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 that Canada is counting on to grow the economy.
Costs accumulate at every border crossing
Brian P. McGuire, AED president and CEO, said the equipment that builds Canada is built, sourced and serviced on both sides of the border, and that many components cross the frontier several times before a machine reaches a customer. Each tariff, whether imposed by Washington or by Ottawa, adds cost at every one of those crossings, he said, and those costs are ultimately paid by farmers, contractors and municipalities, and in the end by Canadian families.
Advocacy stepped up 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 intensified 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.
McGuire described the association's resolve as strong, saying equipment dealers and manufacturers in both countries agree that free and fair trade is the best path to prosperity for the sectors they serve. He said AED's aim is to ensure Canadian decision-makers have the facts about what is at stake, and to encourage every effort to get both governments back to the table.
Purchasing delays ripple through the supply chain
McGuire also linked trade uncertainty to customer behaviour, noting that when buyers cannot count on stable prices and stable trade rules they delay purchases. Those delays, he said, leave technicians without work and set back the projects Canada needs, from housing to critical minerals to food production.
Five recommendations for negotiators
- Seek tariff certainty and sector-specific relief. Pursue exemptions and clarified tariff relief for the heavy equipment industry within 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 penalise the equipment Canadians use to build and produce.
- Establish clear, predictable rules for critical components. Engine parts, safety electronics and other specialised 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 said 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 described heavy equipment as an enabling industry and said it is ready to be a partner to government.