The Associated Equipment Distributors (AED) used its annual advocacy day to call on the Canadian government to make free and fair trade with the United States a top priority during the review of the Canada-United States-Mexico Agreement (CUSMA) and in renewed negotiations with Washington.
The equipment dealers' 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 president and CEO Brian P. McGuire said equipment used to build Canada is built, sourced and serviced on both sides of the border, and many components cross the border several times before reaching a customer. Each tariff, whether imposed by Washington or Ottawa, adds cost at every crossing, he said, and those costs are ultimately paid by farmers, contractors, municipalities and Canadian families.
Advocacy 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 stepped up 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, while AED Canadian board member Brian Osterndorff recently presented the association's case to the Senate of Canada.
McGuire said the group'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 aims to ensure Canadian decision-makers have the facts about what is at stake and to encourage efforts to bring both governments back to the table.
Recommendations for CUSMA talks
- Seek tariff certainty and sector-specific relief. AED wants exemptions and clarified tariff relief for the heavy equipment industry as part of CUSMA discussions, and it urges the use of all diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation aimed at equipment. Tariffs and retaliatory tariffs on industrial goods hit Canadian farmers, contractors and resource producers first, AED said. Any Canadian response should be carefully targeted and should not penalize the equipment Canadians use to build and produce.
- Set clear rules for critical components. Engine parts, safety electronics and other specialized inputs often have no practical alternative supplier outside North America, according to the association.
- Work with industry and labour. AED calls for assessing the full impact of tariffs and developing contingency measures that safeguard Canadian jobs and investment.
- Build resilience at home. The group supports advancing critical infrastructure and skilled trades training so Canadian industries can invest with confidence.
McGuire warned that when customers cannot count on stable prices and stable trade rules, they delay purchases. Those delays reduce work for technicians and hold back projects Canada needs, from housing and critical minerals to food production, he said.
He added that 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. McGuire described the equipment industry as an enabling industry that is ready to partner with government.