U.S. robotics race against China hits tariff crossroads

At first glance, the recent Robotics Summit in Boston seemed like a celebration of cutting-edge innovation: humanoids danced, robotic dogs trotted across exhibit floors, and engineers buzzed with optimism about a future where machines reshape industries.

But beneath the polished demos, a quieter conversation dominated the halls – how would escalating U.S.-China tariffs derail America's bid to lead the global humanoid revolution?

"I'm the CTO, so don't ask me about tariffs," quipped Aaron Saunders, CTO of Boston Dynamics, to laughter from a packed auditorium. The joke landed hard.

Days earlier, Tesla CEO Elon Musk had warned investors that China's export curbs on rare earth magnets – a critical component for robots – would delay development of its Optimus humanoid. For U.S. startups already navigating fragile supply chains, the threat loomed larger: tariffs weren't just a political talking point, they were a potential crisis.

Most industrial robots deployed at the U.S. auto plants hail from Japan, Germany or South Korea. Humanoids, still a niche, rely on hyper-specialized parts like sensors, semiconductors and AI chips that crisscross geopolitical fault lines.

At the summit, Agility Robotics' CTO Pras Velagapudi framed the dilemma as both obstacle and chance: "(Tariffs) added some inconveniences to our own supply chain. But it's also opened up opportunities."

That future is already taking shape at Schaeffler, the German automaker expanding its U.S. plant with Agility's Digit humanoid. Al Makke, Schaeffler's engineering director, argued tariffs might push many companies toward onshoring production of a variety of items in the U.S.: "And if that does happen, then local companies have to deal with high labor costs and a shortage of labor, and so automation gets pushed further. And one of those faces of automation is humanoids."

Yet the path isn't smooth. Unitree, the Chinese startup behind the $16,000 G1 humanoid, showcased its nimble remote-controlled prototype to U.S. researchers and influencers. But with Trump's 145 percent tariffs, the G1's American price tag balloons to $40,000 – a blow for early adopters. Tony Yang, a Unitree vice president of business development who manages its North American sales, remained bullish: "It's still a very narrow market, but I think there's still a huge potential market on the industry side, like for manufacturing and factory and even home use."

Not all robots dodged the trade war's gravity. Tennibot's CEO Haitham Eletrabi listed components sourced globally: "Injection molded parts, rivets, screws, nuts, wheels, motors, batteries … the supply chain gets very complex. We get parts from all over the world. Tariffs are adding a lot of uncertainty."

"In the past, people in Canada found it attractive to come and work for U.S. companies," said Francesca Torsiello from the recruitment firm Adapt Talent. "Right now they're being very hesitant."

(With input from AP)