The Associated Equipment Distributors (AED) is urging the Canadian government to place free and fair trade with the United States at the center of its review of the Canada-United States-Mexico Agreement (CUSMA) and renewed negotiations with Washington.
The industry group made the call during its annual advocacy day. AED said an integrated North American economy works for the sectors it serves, while tariffs on either side of the border raise costs for farmers, contractors, miners and builders that Canada relies on for growth.
Cross-border costs
Brian P. McGuire, AED president and CEO, said the equipment used to build Canada is built, sourced and serviced on both sides of the border. Many components cross the border several times before a machine reaches a customer, he said, and each tariff imposed by Washington or Ottawa adds cost at each crossing.
Those costs are ultimately borne by farmers, contractors and municipalities, and by Canadian families, McGuire said. AED also expressed disappointment in August that the two countries could not reach a trade agreement, and said it 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 and asked them to push 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. Brian Osterndorff, an AED Canadian board member, recently presented the association’s case to the Senate of Canada.
Recommendations for negotiators
AED’s recommendations include seeking tariff certainty and sector-specific relief. The group wants exemptions and clarified tariff relief for the heavy equipment industry in the CUSMA discussions, and it supports using diplomatic channels to prevent new tariffs on equipment and components.
AED also advises Canada to avoid retaliation that targets equipment. It said tariffs and retaliatory tariffs on industrial goods affect Canadian farmers, contractors and resource producers first, and any response should be carefully targeted so it does not penalize the equipment Canadians use to build and produce.
The group further called for clear and predictable rules for critical components. Engine parts, safety electronics and other specialized inputs often have no practical alternative supplier outside North America, according to AED.
Other recommendations include working with industry and labour to assess the full impact of tariffs and develop contingency measures that protect Canadian jobs and investment. AED also advocates building resilience at home by advancing critical infrastructure and supporting skilled trades training so Canadian industries can invest with confidence.
Stable rules and project risk
McGuire said 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 aims to ensure Canadian decision-makers have the facts about what is at stake and to encourage both governments to return to the table.
When customers cannot count on stable prices and stable trade rules, they delay purchases, McGuire said. Those delays reduce work for technicians and hold back projects Canada needs, including housing, critical minerals and food production, he added.
McGuire said the sectors governments rely on to build housing, develop critical minerals, strengthen energy security and feed Canadians 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.