OBOTICS

Robotics industry ‘unsettled’ by tariff threat

The Commerce Department has launched an investigation into robotics and industrial machinery imports, a move that could reshape critical supply chains and alter the competitive landscape.

The investigation, which falls under Section 232 of the Trade Expansion Act, would allow the president to impose tariffs for national security purposes. Officially launched on Sept. 2, the probe was only disclosed last week.

Impacted robotics goods under the proposal include:

• Programmable computer-controlled mechanical systems
• Industrial stamping and pressing machines
• Industrial cutting and welding tools
• Laser- and water-cutting tools

While the administration frames the move as a matter of economic security, the news has rattled industry members relying on foreign robotics to stay competitive in the U.S.

Yuanyuan Fang, Analyst at Third Bridge, told The Deep View that the news has “unsettled” the industry.

“The U.S. remains one of the largest markets for industrial robots, but higher prices driven by tariffs are already slowing demand,” Fang said. “At the same time, investments in electric vehicles, a major driver of automation, are being delayed, adding to the pressure.”

“As tariffs continue to curb end-customers' appetite for new equipment investments, our experts observed that large projects are being delayed across various end markets, which in turn affects the backlog visibility and order cycle of industrial robot manufacturers,” she added.

Uncertainty is compounded as many key components are sourced from Asia, including Japan, and even U.S. assembly offers little protection from tariffs, Fang said.

“Unlike the automotive sector, the U.S. does not have domestic robot manufacturers capable of producing complete systems, meaning buyers will face higher costs rather than switching to local alternatives,” she said.

A recent LinkedIn post from Jeff Burnstein, president of the Association for Advancing Automation, drew similar concerns.

“If significant new tariffs are imposed on all imported robots, will this impact U.S. efforts to reshore manufacturing?” Burnstein wrote.

“We are seeing robotic products coming out of China 1/2 to 1/3 the price of standard robotics,” replied Robert Little, chief of robotics strategy at Novanta Inc. “Is this OK? You could look at it as competition, or you can recognize this as a long-term issue for our supply chain.”