The Associated Equipment Distributors (AED) is urging the Canadian government to make free and fair trade with the United States a leading priority as Ottawa reviews the Canada-United States-Mexico Agreement and engages in renewed negotiations with Washington. The appeal came as part of the trade group's annual advocacy day.
AED argues that integrated North American production is central to the equipment sector. Machines and components are built, sourced and serviced on both sides of the border, and some parts cross the boundary several times before a completed machine reaches a customer. According to the association, each tariff applied by either government adds cost at every crossing, with those expenses ultimately borne by farmers, contractors, municipalities and Canadian households.
Industry presses for a return to the table
AED said it was disappointed in August when the two countries failed to reach a trade agreement, and it has since increased advocacy in both countries. In September, AED president and CEO Brian P. McGuire wrote to U.S. governors in states with substantial exposure to Canadian trade, asking them to press for renewed bargaining. U.S. members of the association have also met with more than 100 members of the U.S. House and Senate, while AED Canadian board member Brian Osterndorff presented the group's position to the Senate of Canada.
McGuire said the association's resolve remains strong and that equipment dealers and manufacturers in both countries share the view that free and fair trade is the best route to prosperity for the sectors they serve. AED, he added, wants Canadian decision-makers to understand what is at stake and is encouraging both governments to return to negotiations.
The group also links trade stability to purchasing decisions. McGuire said that when customers cannot rely on stable prices and stable trade rules, they postpone purchases. Those delays can reduce work for technicians and hold back projects in housing, critical minerals and food production, he said.
Five recommendations for Canada
AED's recommendations focus on reducing tariff exposure while avoiding measures that would raise costs for equipment users.
- Seek tariff certainty and sector-specific relief. AED wants Canada to pursue exemptions and clearer tariff relief for the heavy equipment industry during CUSMA discussions and to use diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation aimed at equipment. The association says tariffs and retaliatory tariffs on industrial goods fall first on farmers, contractors and resource producers. It argues that any Canadian response should be carefully targeted and should not penalize the equipment used to build and produce goods.
- Set predictable rules for critical components. Engine parts, safety electronics and other specialized inputs often have no practical alternative supplier outside North America, according to AED.
- Work with industry and labour. AED calls for a full assessment of tariff impacts and for contingency measures that protect Canadian jobs and investment.
- Build resilience at home. The group supports advancing critical infrastructure and 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 sector and said it is ready to work with government.