North American dealers warn trade tensions threaten equipment demand

Trade uncertainty between Canada and the US is already affecting equipment purchasing decisions. Image: Adobe Stock

Representatives from the trade association, which represents equipment dealers and manufacturers across the US and Canada, met with Ontario government officials to argue for continued free trade between the two countries and to caution against new tariffs or retaliatory trade measures.

AED members operate across Ontario, employing thousands of skilled workers and supplying and servicing equipment used in construction, infrastructure, resource development, agriculture and farming.

Robert Henderson, AED’s executive vice president, said stable trade relations with the US were critical to the province’s equipment industry and wider economy.

“AED represents businesses that supply and service the equipment that builds, feeds and fuels Ontario. Roads, bridges, transit lines, hospitals, affordable housing, food and energy. None of that happens without our members,” he said.“Today, that trade relationship is under threat. Tariffs, retaliatory measures, and political uncertainty are already forcing our members and customers to make difficult decisions,” he added.

AED said members had reported impacts on purchasing decisions, financing conditions, and customers’ willingness to commit to major equipment investments.

The association warned that disruption to cross-border trade could affect jobs, supply chains and project timelines across the province.

As part of its discussions with provincial officials, AED urged Ontario to oppose new tariffs, border measures and trade restrictions that could increase costs for equipment dealers operating across the Ontario-US border.

It also cautioned against retaliatory trade measures that could trigger further protectionism, and called on officials to accelerate infrastructure and agricultural spending to support domestic equipment demand.

The Canada-US trade relationship is the largest bilateral trading partnership in the world, according to AED.

For Ontario’s equipment industry, AED said cross-border commerce represents billions of dollars in annual activity, including the sale, rental and service of construction, agricultural, industrial and material-handling equipment.

Brian Osterndorff, president and CEO of Robert’s Equipment in Chesley, Ontario, and an AED board member, said, “The workers who service our agricultural equipment, who operate our machines, and who keep this province fed – they are counting on this government to keep fighting for them. Not eventually. Now.”