ALBERTA, CANADA (RFD-TV) — Trade friction and tariffs are creating uncertainty for North American equipment manufacturers, raising concerns about factory operations, jobs and future investment as industry executives press Canadian lawmakers for greater trade certainty.
Shaun Haney, host of RealAg Radio, said equipment manufacturers on both sides of the border are dealing with the effects of tariffs on steel, machinery parts and other products that move through integrated supply chains.
“The equipment industry is a big user of steel, of course,” Haney said.
More than 20 equipment manufacturing executives met with Canadian lawmakers in Ottawa last week to share how trade uncertainty is affecting their businesses.
Tariffs Put Pressure on Manufacturing and Jobs
Haney said the back-and-forth between the United States and Canada has affected manufacturers that depend on cross-border trade. Steel tariffs and Canada’s retaliatory measures, which included products such as combine headers, have added pressure to the sector.
“North American machinery production relies on parts crossing the border multiple times, and tariffs hit at every manufacturing stage,” Haney said.
He said the consequences extend beyond company profits and the ability to fulfill orders to manufacturing employment in both countries.
The Association of Equipment Manufacturers represents companies supporting 147,000 Canadian jobs, Haney noted, with additional employment tied to the industry in the United States.
Trade Uncertainty Could Shift Manufacturing
Haney said manufacturers are evaluating where they produce equipment and whether moving production closer to their primary customer base could help them avoid cross-border tariffs.
He said the changes could work in either direction, depending on where a company’s largest market is located.
A Canadian manufacturer with a larger customer base in the United States could consider moving production south, while a company serving more Canadian customers could consider shifting production north.
“It’s really individual members. They’re all going to be different,” Haney said.
He added that manufacturers face competing pressures from tariffs and a weaker equipment market. With machinery sales already struggling in both countries, higher supply-chain costs create another challenge.
“Less sales and increased cost structure on some of the supply chains,” Haney said. “I think both things are working against manufacturers at the same time.”
Manufacturers Seek Clearer Trade Policies
Haney outlined three priorities manufacturers want governments to address.
The first is predictable tariff exemptions for agricultural machinery and replacement parts. He said long-term exemptions would help manufacturers maintain stable supply chains.
The second is streamlined customs procedures and more consistent trade policies to reduce unexpected costs and delays at the border.
Haney said those issues can affect farmers directly when equipment orders get held up or unexpected tariffs increase the final price.
The third priority is stability under the United States-Mexico-Canada Agreement (USMCA).
“Reaffirming its commitment to duty-free North American manufacturing does provide the certainty required for multi-year capital planning,” Haney said.
Investment Decisions Depend on Certainty
Haney said trade uncertainty can make it difficult for company leaders and boards to commit to long-term investments.
Without clearer policies, manufacturers may reconsider plans to expand facilities, purchase equipment or create jobs.
“The more trade certainty that there is, the easier it is for boards of directors at some of these companies to be like, you know what? We’ve got to maybe back off on the capital deployment plan, not build that factory, not create those jobs,” Haney said.
He said the concerns reach beyond equipment manufacturing and affect agriculture more broadly.
