Photography: AED

The costs of the U.S.-Canada trade dispute extend into American supply chains, and an association representing 800 equipment dealers, manufacturers and service businesses is calling on U.S. governors to help end the impasse.

Associated Equipment Distributors (AED) said September 16 that President and CEO Brian P. McGuire had written to governors of states with significant exposure to Canadian trade, urging them to push for a consistent, tariff-free trading relationship. AED represents more than 800 equipment distributors, manufacturers and service companies, according to its website. Its membership includes businesses in both the United States and Canada. AED membership information⁠

It covers three main types of companies:

• Dealers and distributors that sell and rent equipment and provide parts, maintenance and aftermarket support.
• Manufacturers of industrial equipment and related products.
• Business service providers, including finance, insurance and business software companies.

They serve construction, agriculture, mining, forestry, power generation, cranes, material handling and other industrial markets. AED’s membership overview⁠ AED’s March 2025 trade submission said it represented 800 members and 140,000 employees on both sides of the border. 

For B2B companies, the association’s message is direct: uncertainty at the border threatens the investment decisions, equipment costs and supply relationships that American businesses depend on.

“Our supply chains do not stop at state lines or national borders. Heavy machinery, agricultural equipment, industrial components, and service parts routinely cross the U.S.-Canada border multiple times during production and distribution,” McGuire wrote.

“The ongoing uncertainty created by trade disputes will disrupt significant multi-year capital investments, inflate equipment costs, and directly threaten local jobs.”

Those repeated border crossings help explain why trade friction with Canada creates exposure for American manufacturers and distributors. Equipment production and support depend on interconnected networks of suppliers, dealers and customers. Disruption can carry through those networks to the farmers, contractors and other businesses purchasing machinery and keeping existing equipment operating.

AED represents companies involved in the sale, rental, manufacturing and support of equipment used across construction, agriculture, mining, forestry, power generation and industrial applications. Its intervention reflects concerns spanning multiple business markets.

The appeal to governors follows McGuire’s visit to Washington, where he met with officials at the Canadian embassy and senior lawmakers, including members of the House Ways & Means Committee’s Subcommittee on Trade. By approaching state leaders, AED is connecting the international dispute to local employment and business investment.

“Your leadership is vital. AED respectfully calls on you to exercise every mechanism at your disposal to return to a consistent and tariff-free trade relationship with Canada,” McGuire wrote.

The association also urged respect for the United States-Mexico-Canada Agreement, positioning predictable North American trade as a foundation for business competitiveness.

“Honoring the framework of the USMCA is essential to maintaining low operational costs for small businesses, farmers, contractors, and builders,” McGuire said.

The release does not quantify financial losses, identify individual manufacturers experiencing disruption or name the governors receiving letters. It does, however, document an American industry association pressing for resolution because of the risks to American businesses.

For companies planning capital purchases and managing cross-border supplier relationships, that is the central B2B issue: the dispute introduces uncertainty into an integrated production and distribution system, with consequences that can reach well beyond the businesses directly importing goods.