At a bustling Robotics Summit in Boston, robots danced and futuristic machines promised to reshape industries. But behind the excitement, a serious concern loomed: escalating U.S.-China tariffs might derail America’s push to lead the global robotics revolution.
“I’m the CTO, so don’t ask me about tariffs,” joked Aaron Saunders of Boston Dynamics, drawing laughs from the crowd. But the laughter masked real worries. Just days earlier, Tesla’s Elon Musk warned that China’s export limits on rare earth magnets—vital for making robots—could delay the development of Tesla’s humanoid robot, Optimus.
For many U.S. startups, supply chains are already fragile. The tariffs aren’t just politics—they’re a potential crisis. Humanoid robots, which rely on specialized parts like sensors and AI chips, often source components that cross geopolitical lines.
Pras Velagapudi, CTO of Agility Robotics, acknowledged the challenges but saw a silver lining. “(Tariffs) added some inconveniences to our supply chain,” he said. “But it’s also opened up opportunities.”
Some companies, like German automaker Schaeffler, are adapting. They’re expanding their U.S. plants and using robots like Agility’s Digit humanoid. Al Makke, Schaeffler’s engineering director, believes that tariffs might encourage more companies to manufacture in the U.S. “If that happens, local companies have to deal with high labor costs and a shortage of workers, so automation gets pushed further. And one face of automation is humanoids,” he explained.
However, not everyone can dodge the impact. Unitree, a robotics startup, showcased its G1 humanoid robot at the summit. Priced at $16,000, the G1 could be a hit, but U.S. tariffs inflate its price to $40,000 for American buyers. Despite this, Tony Yang of Unitree remains optimistic about the potential market.
Others feel the squeeze more acutely. Haitham Eletrabi, CEO of Tennibot, detailed how tariffs add uncertainty to their complex global supply chain. “We get parts from all over the world. Tariffs are adding a lot of uncertainty,” he said.
Even talent recruitment is affected. “In the past, people in Canada found it attractive to work for U.S. companies,” noted recruiter Francesca Torsiello. “Right now, they’re being very hesitant.”
As the robotics industry grapples with these challenges, one thing is clear: the intersection of technology and global politics is shaping the future in unexpected ways.
