As part of its annual advocacy day, the Associated Equipment Distributors (AED) has called 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 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 Canada is counting on to grow its economy.
"The equipment that builds Canada is built, sourced and serviced on both sides of the border. Many components cross the border several times before a machine ever reaches a customer," said Brian P. McGuire, president and CEO of AED. "Every tariff, whether imposed by Washington or by Ottawa, adds cost at each crossing." McGuire said those costs are paid by farmers, contractors and municipalities, and in the end by Canadian families.
AED said it was disappointed in August that the two countries could not reach a trade agreement, and has since stepped up advocacy on both sides of the border. 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 described the association's resolve as strong, saying equipment dealers and manufacturers in both countries agree that free and fair trade is the best path to prosperity for the sectors they serve.
Recommendations for Canadian decision-makers
AED used its advocacy day to set out five recommendations:
- Seek tariff certainty and sector-specific relief. Pursue exemptions and clarified tariff relief for the heavy equipment industry as part of the CUSMA discussions, and use all diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation that targets equipment. Tariffs and retaliatory tariffs on industrial goods hit Canadian 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 safeguard Canadian jobs and investment.
- Build resilience at home. Advance critical infrastructure and support skilled trades training so Canadian industries can invest with confidence.
McGuire also linked trade stability to purchasing decisions, noting that when customers cannot count on stable prices and stable trade rules they delay purchases. Those delays, he said, leave technicians without work and hold back the projects Canada needs, from housing to critical minerals to food production.
"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," McGuire said. "This is an enabling industry, and we are ready to be a partner to government."