The Associated Equipment Distributors (AED) used its annual advocacy day to press the Government of Canada to treat free and fair trade with the United States as a leading priority, both in the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and in the reopened negotiations with Washington.
The dealer association argued that an integrated North American economy delivers results, and that tariffs applied on either side of the border push up costs for the farmers, contractors, miners and builders that Canada depends on for growth.
Brian P. McGuire, AED president and CEO, said the machines that build Canada are manufactured, sourced and serviced on both sides of the border, and that many components cross the line several times before a unit reaches a customer. Each tariff, whether set in Washington or in Ottawa, adds cost at every one of those crossings, he said, and those costs are borne by farmers, contractors and municipalities before reaching Canadian households.
The association has been building its case since August, when it voiced disappointment that the two countries failed to conclude a trade agreement. In September, McGuire wrote to U.S. governors in states with heavy exposure to Canadian trade, asking them to push for a return to the bargaining table. AED's American members have since met with more than 100 members of the U.S. House and Senate, and Canadian board member Brian Osterndorff presented the association's position to the Senate of Canada.
McGuire said the group's resolve has not weakened, describing free and fair trade as the surest route to prosperity for the sectors AED members serve. He said the association intends to ensure Canadian decision-makers understand what is at stake and to support every effort to bring both governments back to negotiations.
Purchase delays and project risk
Beyond the immediate cost question, AED points to an effect on demand. When customers cannot rely on stable prices and stable trade rules, McGuire said, they postpone purchases; when purchases slip, technicians lose work and the projects Canada needs — from housing to critical minerals to food production — fall behind.
Five recommendations
AED's submission sets out five priorities for Canadian negotiators:
- Seek tariff certainty and sector-specific relief. Pursue exemptions and clearer tariff relief for the heavy equipment industry within the CUSMA discussions, and use all diplomatic channels to head off new duties on machinery and components.
- Avoid retaliation that targets equipment. Tariffs and counter-tariffs on industrial goods fall first on Canadian farmers, contractors and resource producers, so any Canadian response should be narrowly aimed and should not penalise the equipment Canadians use to build and produce.
- Set clear, predictable rules for critical components. Engine parts, safety electronics and other specialised inputs frequently have no practical supplier outside North America.
- Work with industry and labour. Assess the full impact of tariffs and prepare 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 closed by noting that the sectors governments are counting on to build housing, develop critical minerals, strengthen energy security and feed Canadians all rely on dependable access to equipment and on integrated North American supply chains. He described equipment distribution as an enabling industry and said AED is ready to act as a partner to government.