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 in the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and in renewed negotiations with Washington.
The association made the call as part of its annual advocacy day. It argued that an integrated North American economy works and that tariffs on either side of the border raise costs for farmers, contractors, miners and builders that Canada relies on for growth.
Brian P. McGuire, AED president and CEO, said equipment that builds Canada is built, sourced and serviced on both sides of the border, with many components crossing the border several times before a machine reaches a customer. He said every tariff, whether imposed by Washington or Ottawa, adds cost at each crossing, and those costs are ultimately paid by farmers, contractors, municipalities and 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, while AED Canadian board member Brian Osterndorff recently presented the association's case to the Senate of Canada.
Recommendations to Ottawa
AED's recommendations include:
- Seek tariff certainty and sector-specific relief. AED wants exemptions and clarified tariff relief for the heavy equipment industry as part of CUSMA discussions, and it called for all diplomatic channels to be used 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, according to AED. It said 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. AED noted that engine parts, safety electronics and other specialized inputs often have no practical alternative supplier outside North America.
- Work with industry and labour. The association called for an assessment of the full impact of tariffs and for contingency measures that safeguard Canadian jobs and investment.
- Build resilience at home. AED urged Canada to advance critical infrastructure and support skilled trades training so Canadian industries can invest with confidence.
McGuire said 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. He described the equipment industry as an enabling industry and said it is ready to be a partner to government.