Canada Still Dominates US Equipment Exports Despite 13% Drop in 2025
According to Equipment Journal, Canada imported $5.1 billion in US-made construction machinery in 2025, remaining the single largest destination for American equipment exports despite a 13.2% year-over-year decline, citing data from the Association of Equipment Manufacturers’ (AEM) report, “The Economic Impact of the U.S. Equipment Manufacturing Industry.”
Market Impact
Canada’s $5.1 billion in purchases represents 45% of all US equipment exports, a commanding lead over second-place Australia, which bought $1.447 billion, or 13% of total US exports. Overall, American machinery exports fell 9.7% in 2025, a trend AEM ties directly to retaliatory tariffs.
“As we’ve seen, countries targeted by tariffs have retaliated, increasing their tariffs on US-produced goods, and thus impacting US exports as well,” said Brian Bieller, Chair of AEM’s Government and Public Affairs Committee and President of Bomag Americas.
On the import side, US buyers pulled back sharply, with total equipment imports falling 17.7% to $20.8 billion. Japan led all import sources at $4.6 billion. Canadian exports to the US also slipped 2.2% to $1.731 billion.
Despite the trade headwinds, the US off-highway equipment manufacturing sector reported $902 billion in total sales activity in 2025, supported 2.2 million jobs, and contributed roughly $415 billion to GDP. For the first time, average annual pay per industry employee crossed six figures, reaching approximately $105,000, about 50% above the national average.
What It Means for Subcontractors
- Cross-border equipment sourcing is getting more expensive. Tariff retaliation on both sides of the border is pushing up costs for subcontractors who buy, rent, or move equipment between the US and Canada. Budget accordingly for 2026 fleet decisions.
- Used equipment values may shift. A 13% drop in Canadian imports of US machinery could soften demand in some equipment categories, potentially creating buying opportunities for US-based field companies looking to expand their fleets at lower cost.
- Equipment availability on job sites could tighten. With overall US machinery imports down 17.7%, supply chains for replacement equipment and attachments remain under pressure. Subcontractors should review lead times with dealers now rather than waiting until a machine goes down.
- Labor costs for skilled equipment operators are rising. Average annual pay in the US off-highway equipment manufacturing sector has crossed $105,000, a 50% premium over the national average, signaling broad upward wage pressure across equipment-related trades. Field service companies should factor higher labor costs into project bids.
