The Association of Equipment Manufacturers Calls on the Federal Government to Prioritize Tariff Relief, Trade Competitiveness in Budget 2026

OTTAWA, ON, September 14, 2026 – The Association of Equipment Manufacturers (AEM), which represents off-road equipment manufacturers and suppliers across Canadian construction, agriculture, forestry, mining and utility sectors, today announced its recommendations to the federal government ahead of Fall 2026 Budget. The submission urged the federal government to prioritize four key areas: support for tariff-impacted businesses, the accelerated development of Canada's skilled trades pipeline, continued investment in innovation, and trade competitiveness.

The 2026 Budget comes at a time of heightened uncertainty, with the escalating tariff environment generating cumulative cost increases, supply-chain vulnerabilities, and reduced investment confidence for industries with deeply integrated North American supply chains and which are critical to Canada's long-term economic security.

AEM's Four Budget 2026 Priorities

AEM's submission calls on the federal government to focus on four key areas in the upcoming 2026 budget:

1. Supporting Businesses Navigating the Tariff Environment:

AEM urges the government to keep tariff remission accessible and responsive for manufacturers facing hardship, ensure business supports reflect their cost and liquidity pressures, and consult affected industries on any future retaliatory measures.

2. Workforce Development:

AEM encourages the government to expand support for apprenticeships, work-integrated learning, and industry-post-secondary-skilled trades partnerships to build the talent pipeline manufacturers need.

3. Innovation and Investment:

AEM supports continued commitment to the SR&ED program, which helps de-risk investment in automation, digital technologies, and electrification, along with targeted incentives for capital investment and modernization.

4. Trade Competitiveness:

AEM is calling for investment in export-focused infrastructure and trade corridors, a more streamlined regulatory environment, and a renewed 16-year extension of CUSMA to give manufacturers long-term certainty.

"Escalating trade tensions are putting significant strain on Canadian equipment manufacturers, their workers, and the communities which they call home," said Kip Eideberg, Senior Vice President, Government & Industry Relations at AEM. "By addressing the main barriers to greater business output, the federal government can help Canada’s industrial base better navigate the current trade disruption, unlock new business opportunities, and reinforce the country’s manufacturing advantage on the global stage."

The equipment manufacturing industry supports more than 147,000 jobs across Canada, contributes approximately $24 billion annually to the country's GDP, and generates $54 billion in total sales and output each year, manufacturing the equipment that builds roads, homes, ports, energy infrastructure, and critical minerals projects across the country.