Associated Equipment Distributors (AED) used its annual advocacy day to call 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 association's central argument is that an integrated North American economy works, and that tariffs imposed on either side of the border raise costs for the farmers, contractors, miners and builders that Canada depends on to grow its economy.
Components cross the border more than once
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 line several times before a machine ever reaches a customer. He argued that every tariff, whether imposed by Washington or by Ottawa, adds cost at each crossing, and that 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 when the two countries were unable to reach a trade agreement, and has since intensified its advocacy in both markets. 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 said the association'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 described AED's role as making sure Canadian decision-makers have the facts about what is at stake and encouraging every effort to bring both governments back to the table.
Five recommendations for negotiators
- Tariff certainty and sector relief. AED wants exemptions and clarified relief for the heavy equipment industry within the CUSMA discussions, and all diplomatic channels used to head off new duties on equipment and components.
- No retaliation aimed at equipment. Tariffs and counter-tariffs on industrial goods hit Canadian farmers, contractors and resource producers first, so any response should be narrowly targeted and should not penalize the equipment Canadians use to build and produce, the association said.
- 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.
- Work with industry and labour. The association is asking for a full assessment of tariff impacts and for contingency measures that safeguard Canadian jobs and investment.
- Build resilience at home. AED supports advancing critical infrastructure and backing skilled trades training so Canadian industries can invest with confidence.
McGuire tied trade stability directly to purchasing behaviour, saying that when customers cannot count on stable prices and stable trade rules they delay purchases, and that those delays cost technicians work and hold back the projects Canada needs, from housing to critical minerals to food production.
He added that 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, describing heavy equipment as an enabling industry that is ready to partner with government.