Construction & Building Machinery

AED presses Canada to prioritize free trade in CUSMA review

Pietro AnselmiNovember 4, 20265 min read1 views

At a glance

  • The equipment distributors' association sets out tariff and supply-chain priorities as Ottawa reviews CUSMA and returns to talks with Washington.
  • The Associated Equipment Distributors urged Canada to make free and fair trade with the United States a priority in the CUSMA review and renewed negotiations, warning that tariffs at each border crossing raise costs for equipment users. The association also listed five recommendations, including sector-specific tariff relief and predictable rules for critical components.
A stylized excavator and wheel loader ride a flatbed across a truss bridge spanning a painted border line, with crates of engine components stacked nearby.

The Associated Equipment Distributors (AED) used its annual advocacy day to urge 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 argued that an integrated North American economy works, and that tariffs on either side of the border drive up costs for the farmers, contractors, miners and builders Canada is counting on to grow its economy.

Brian P. McGuire, AED president and CEO, said the equipment that builds Canada is manufactured, sourced and serviced on both sides of the border, and that many components cross the frontier several times before a machine reaches a customer. Each tariff, whether imposed by Washington or by Ottawa, adds cost at every crossing, he said, and those costs are ultimately paid by farmers, contractors and municipalities — and by Canadian families.

AED said it was disappointed in August when the two countries could not reach a trade agreement, and has since stepped up its advocacy on both sides of the border. In September, McGuire wrote to U.S. governors in states with significant exposure to Canadian trade, pressing them to push 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, and AED Canadian board member Brian Osterndorff recently presented the association's case to the Senate of Canada.

McGuire said the association's resolve remains strong and that equipment dealers and manufacturers in both countries agree on one point: free and fair trade is the best path to prosperity for the sectors they serve. He said AED is working to ensure Canadian decision-makers have the facts about what is at stake, and to encourage every effort to get both governments back to the table.

He also described a knock-on effect for customers: when they cannot count on stable prices and stable trade rules, they delay purchases, and when purchases are delayed, technicians lose work and the projects Canada needs — from housing to critical minerals to food production — fall behind.

Recommendations to Ottawa

AED's submission sets out five priorities for Canada:

  • Seek tariff certainty and sector-specific relief. Pursue exemptions and clarified tariff relief for the heavy equipment industry within the CUSMA discussions, and use all diplomatic channels 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; any Canadian response should be carefully targeted and should not penalize the equipment Canadians use to build and produce.
  • Set clear, predictable rules for critical components. Engine parts, safety electronics and other specialized inputs often have no practical alternative supplier outside North America.
  • Work with industry and labour. Assess the full impact of tariffs and develop 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 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. Calling it an enabling industry, he said AED is ready to be a partner to government.

Reported by Pietro Anselmi, Drivetrain Procurement and Lifecycle Analyst.