The Associated Equipment Distributors (AED) has called 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 made the recommendation as part of its annual advocacy day.
AED said an integrated North American economy works for the equipment sector, while tariffs on either side of the border raise costs for farmers, contractors, miners and builders that Canada relies on for economic growth. Brian P. McGuire, AED president and CEO, said heavy equipment used across Canada is manufactured, sourced and serviced in both countries, 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 each crossing, he said, and those costs ultimately reach farmers, contractors, municipalities and Canadian families.
AED expands cross-border advocacy
AED said it was disappointed in August that the two countries could not reach a trade agreement and 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, 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 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. AED said it aims to ensure Canadian decision-makers understand what is at stake and to encourage both governments to return to negotiations.
He also linked trade stability to purchasing decisions, saying customers who cannot count on stable prices and trade rules delay purchases. Those delays, he said, cause technicians to lose work and hold back projects Canada needs in housing, critical minerals and food production.
Recommendations focus on tariffs and components
AED’s recommendations include seeking tariff certainty and sector-specific relief for the heavy equipment industry through the CUSMA discussions, along with exemptions and clarified tariff relief. The group also urged Canada to use diplomatic channels to prevent new tariffs on equipment and components.
The association recommended avoiding retaliation that targets equipment, arguing that tariffs and retaliatory tariffs on industrial goods hit Canadian farmers, contractors and resource producers first. Any Canadian response should be carefully targeted and should not penalize the equipment Canadians use to build and produce, AED said.
AED also called for clear and predictable rules for critical components. It noted that engine parts, safety electronics and other specialized inputs often have no practical alternative supplier outside North America.
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; advancing critical infrastructure; and supporting 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 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.