AED is encouraging Canadian policymakers to pursue free trade measures that protect equipment supply chains, support rural economies and improve long-term industry resilience.
With the US mid-term elections now complete, the Associated Equipment Distributors (AED) is urging the Government of Canada to prioritize free and fair trade with the United States as part of the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and renewed trade negotiations with Washington.
The association delivered its message in Ottawa during its annual advocacy day, emphasizing the importance of maintaining integrated North American supply chains and reducing trade barriers that increase costs for businesses and consumers.
AED represents companies involved in selling, renting, servicing, and manufacturing equipment used across agriculture, construction, mining, forestry, and infrastructure industries. Its Canadian members generate more than $100 billion in annual revenue, employ over 140,000 people, and operate more than 7,200 locations across North America.
According to AED, equipment manufacturing and distribution depend heavily on cross-border supply chains, with components frequently moving between Canada and the United States several times before a machine reaches its final customer.
"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. Those costs are paid by farmers, contractors and municipalities, and in the end by Canadian families."
Following the failure to reach a trade agreement in August, AED expanded its advocacy efforts in both countries. In September, McGuire contacted U.S. governors representing states with significant Canadian trade relationships, encouraging them to support renewed negotiations.
AED's U.S. members have also held meetings with more than 100 members of Congress, while Canadian board member Brian Osterndorff presented the association's position to the Senate of Canada.
"Our resolve remains strong," said McGuire. "Equipment dealers and manufacturers in both countries agree on one thing: free and fair trade is the best path to prosperity for the sectors we serve. We are here to make sure Canadian decision-makers have the facts about what is at stake, and to encourage every effort to get both governments back to the table."
McGuire also warned that uncertainty surrounding trade policies could discourage equipment purchases, reduce employment opportunities for technicians, and delay important projects.
The association outlined five recommendations for Canadian policymakers:
- Seek tariff certainty and industry-specific relief: Pursue exemptions and clearer tariff protections for heavy equipment and components during CUSMA negotiations while working to prevent additional trade restrictions.
- Avoid retaliatory measures targeting equipment: Ensure Canadian trade responses do not increase costs for farmers, contractors, and resource producers who depend on industrial machinery.
- Establish predictable rules for critical components: Maintain reliable access to essential inputs, including engine parts, safety electronics, and specialized equipment components.
- Collaborate with industry and labor: Evaluate the economic impact of tariffs and develop contingency plans that protect Canadian employment and investment.
- Strengthen domestic resilience: Invest in critical infrastructure and skilled-trades training to support long-term industrial growth.
"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," said McGuire. "This is an enabling industry, and we are ready to be a partner to government."