Why Some Robot Startups Could Gain From Tariffs

Among tech companies, robotics companies are particularly vulnerable to tariff hikes, given that many robot parts come from China. The import taxes mean higher costs that robotics firms will have to either absorb or pass on to customers—a setback to their business either way. 

But a number of startups that employ overseas workers to control robots in U.S. facilities are hopeful the changes could actually boost demand from U.S. manufacturers. That’s because these remote-controlled robots could still cost less than hiring U.S. factory workers.

Reflex Robotics, for example, employs workers in the U.S., Latin America and South America, who can take over control of the three-year-old company’s wheeled humanoids, said chief revenue officer David Schwebel. The New York-based firm’s human-operated robots are already moving packages for logistics giant GXO.

Even if costs go up for some imported robot parts, companies like Reflex could still be able to profitably price their robots below the wages for humans performing the same jobs. Eventually, these robotics companies plan to use the data they collected from human operators to train their robots to work autonomously, which could bring costs down further.