The Associated Equipment Distributors (AED) is urging the Canadian government to put free and fair trade with the United States at the center of the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and renewed negotiations with Washington. The association made the call as part of its annual advocacy day, arguing that an integrated North American economy benefits the customers its members serve.
AED said tariffs on either side of the border increase costs for farmers, contractors, miners and builders—groups Canada is relying on to grow the economy. Brian P. McGuire, AED president and CEO, said equipment that builds Canada is built, sourced and serviced on both sides of the border, and many components cross the border several times before a machine reaches 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 push 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 increased advocacy in both countries. 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, while AED Canadian board member Brian Osterndorff presented the association's case to the Senate of Canada.
McGuire said AED's resolve remains strong and that equipment dealers and manufacturers in both countries agree free and fair trade is the best route to prosperity for the sectors they serve. He said the association wants Canadian decision-makers to have the facts about what is at stake and is encouraging efforts to bring both governments back to the table.
Tariff uncertainty and delayed purchases
McGuire also linked trade stability to customer purchasing decisions. When customers cannot count on stable prices and stable trade rules, they delay purchases, he said. Those delays reduce work for technicians and hold back projects Canada needs, including housing, critical minerals and food production, according to McGuire.
Recommendations for Ottawa
AED outlined several recommendations for Canadian officials:
- Seek tariff certainty and sector-specific relief. The group wants exemptions and clarified tariff relief for the heavy equipment industry as part of CUSMA discussions, and it urges Canada to use diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation that targets equipment. AED said tariffs and retaliatory tariffs on industrial goods hit Canadian farmers, contractors and resource producers first, and any Canadian response should be carefully targeted so it does 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, according to the association.
- Work with industry and labour. AED called for an assessment of the full impact of tariffs and for contingency measures that safeguard Canadian jobs and investment.
- Build resilience at home. The group urged Canada to 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 AED is ready to be a partner to government.