Farm Equipment has received notification of a March 27 Tariff Alert issued by the Associated Equipment Distributors (AED) where it cautions on retaliatory tariffs targeting the equipment industry and its advocates in Ottawa and D.C. The entirety of that new is being shared here with permission:

The AED delivered its submission to the Canadian Department of Finance responding to the consultation on retaliatory tariff measures deployed on products coming from the United States. In the document, AED cautioned the Government to take extremely targeted measures to avoid significant economic damages to Canada’s critical industries. Warning about the impact on the Canadian economy of tariffing heavy equipment, parts and related supplies, AED wrote, “To ensure a healthy economy, Canada must urgently build trade infrastructure and ensure there is a secure and competitive construction, mining, agriculture, and forestry industry across the country.”

The association continues to deliver the message in both Ottawa and Washington, D.C., that tariffs are counterproductive and will harm both countries. AED’s President & CEO Brian P. McGuire was on Capitol Hill this past week with equipment dealers from North Dakota, South Dakota, Minnesota, Iowa, and Nebraska, to convey the harm tariffs are causing on the equipment industry and our customers. 

During AED’s regular meetings with lawmakers and Trump administration officials, and at AED-hosted congressional meetings at equipment dealerships across the United States, AED highlights the detrimental impact of tariffs, particularly on our key trading partners, like Canada, and urges a renegotiation of CUSMA/USMCA as the alternative to an escalating trade war.

Associated Equipment Distributors (AED) is responding to the Canadian Department of Finance’s consultation on retaliatory tariff measures deployed on products coming from the United States. AED believes that any measures taken must be extremely targeted to avoid significant economic damage to Canada’s critical industries including, construction, agriculture, mining, forestry and energy.

AED believes that goods imported from the United States into Canada to be used in these sectors of the economy and for use with heavy equipment should not be included in any retaliatory tariff measures that the Department of Finance enacts to limit the impact on Canada’s economy and ensure continued economic growth and security in Canada’s most important industries.

PROTECT CANADIAN INDUSTRY

In the face of a U.S. instigated trade war, Canada must protect its industries and economy. To ensure a healthy economy, Canada must urgently build trade infrastructure and ensure there is a secure and competitive construction, mining, agriculture, and forestry industry across the country. All these industries rely on AED equipment.

Tariffing agricultural and heavy equipment will damage Canada’s economy at the precise moment when it is needed most to help build new trade routes and secure Canadian jobs. 

AED has collected key tariff codes from our members to share the impact that these retaliatory measures will have on our industries and the risks this has to limit Canada’s economic growth and security in both the immediate and long-term future. {AED’s submission also included a list of key tariff codes collected from our members.}

CHALLENGES IN SOURCING EQUIPMENT

Due to the interconnected nature of trade across North America for decades, Canadian industries and businesses rely on importing equipment and goods from American sources where there is not a Canadian alternative and finding alternatives abroad pose significant challenges to our members. Heavy equipment distributors rely on the cross-border trade of our equipment and machinery for sale and servicing. Imposing tariffs on the products our industry relies on could significantly disrupt supply chains, cross-border trade for critical industries, and increase the cost for consumers for a variety of industries.

Disruptions to supply chains could also lead to shortages of critical equipment used to service and repair heavy equipment causing a shortage of heavy equipment for key industries and slowing down important infrastructure development.

ADVOCACY IN WASHINGTON, D.C.

As a Canada/U.S. trade association with members on both sides of the border AED has been advocating hard against tariffs in Washington D.C.

In Washington, AED has been working to stop tariffs and bring both countries to the table to negotiate an end to the tariff threats from the United States. Canadian industries have had a voice on Capitol Hill and in the U.S. administration.

Both countries rely on the cross border trade of heavy equipment and while AED continues to be an advocate in Washington, removing Canadian tariffs on heavy equipment entering Canada will ensure that AED can continue to advocate for fair and free trade in Washington and protect Canadian industries and jobs.

CONCLUSION

This submission is not intended as a definitive brief on how the Department of Finance should conduct its strategy with regard to tariffs from the United States. Rather it is an answer to the fundamental question posed by the consultation: How does the Department of Finance protect Canadian consumers and critical Canadian jobs and industries from the impact of tariffs and any retaliatory measures.

Placing retaliatory tariffs on goods that the heavy equipment industry relies on poses a significant risk to a number of critical industries across Canada including mining, agriculture, energy, and forestry. At a time of significant economic uncertainty, Canada cannot risk harming these key industries and the jobs that these industries help create.While AED understands the decision to implement retaliatory measures against the United States, these measures need to be targeted to avoid unnecessary harm to some of Canada’s most important economic sectors.

AED is a Canada/U.S. trade association that represents companies involved in the distribution of equipment used in agriculture, construction, forestry, mining, power generation and other infrastructure applications. AED represents 800 members and 140,000employees on both sides of the U.S./Canada border.

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