The Associated Equipment Distributors (AED) used its annual advocacy day to urge the Government of Canada to make free and fair trade with the United States a top priority in the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and in renewed negotiations with Washington.
AED said 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 relies on for growth. The group's president and CEO, Brian P. McGuire, said the equipment used to build Canada is built, sourced and serviced on both sides of the border, with many components crossing the border several times before a machine reaches a customer.
Every tariff, whether imposed by Washington or by Ottawa, adds cost at each crossing, McGuire said. Those costs, he added, are paid by farmers, contractors and municipalities and ultimately by Canadian families.
AED said it was disappointed in August that the two countries could not reach a trade agreement and 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 presented the association's case to the Senate of Canada.
Trade recommendations
AED outlined five recommendations for Canadian decision-makers:
- Seek tariff certainty and sector-specific relief. Pursue exemptions and clarified tariff relief for heavy equipment as part of CUSMA discussions, and use diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation that targets equipment. Tariffs and retaliatory tariffs on industrial goods hit farmers, contractors and resource producers first, so 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 protect 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 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 partner with government.
He also warned that when customers cannot count on stable prices and stable trade rules, they delay purchases. Those delays, he said, reduce work for technicians and hold back projects Canada needs, from housing to critical minerals to food production.