Chinese manufacturers currently dominate the global robotics industry, holding over 70% of the market share across the entire value chain. Nearly two-thirds of this market is comprised of hardware such as sensors, actuators, power systems, and embedded AI chips. China’s dominance is the product of hundreds of billions of dollars of Chinese government investment in research, collaboration, and commercialization in this sector.
China leads in critical component technologies, such as LiDAR (Light Detection and Ranging), where it commands approximately 65% of global market share. The situation is even more pronounced for drones. As fighting in Ukraine and elsewhere demonstrates, drones offer a cost-effective and strategically valuable alternative to conventional military assets. Yet, China produces over 80% of the world’s military and commercial unmanned aerial vehicles often at significantly lower costs than U.S. manufacturers.
Alarm has continued to grow within the U.S. Government over this dependence on foreign robotics and drone components. On September 26th, the Trump Administration requested public comment under Section 232 of the Trade Expansion Act of 1962 on the effects of imports of foreign-made robots and components on national security. Notice for Request for Public Comments on Section 232 National Security Investigation of Imports of Robotics and Industrial Machinery. A separate Section 232 investigation is underway for unmanned aircraft systems, including drones.
Section 232 empowers the President to impose tariffs if such imports are found to threaten national security. In 2018, the first Trump Administration relied on Section 232 to impose tariffs of 25% on steel. In the Section 232 steel investigation, the Commerce Department found that excessive steel imports harmed U.S. industry by reducing employment, R&D, investment and critical skills, raising the risk that the U.S. cannot meet its national security requirements. The Biden Administration maintained these duties, which the second Trump Administration increased to 50% in 2025.
The overarching goal of these measures is to protect and stimulate growth in domestic industries that are vital to national defense and infrastructure by reducing reliance on foreign suppliers. Similar tariff actions could well be taken soon for the robotics and industrial machinery sectors, enhancing the competitiveness of domestic producers.
At Carnegie Foundry, we and our National Robotics Engineering Center partners have a unique view on the global robotics component market, including supply of high-performance, low-cost components for defense and critical infrastructure applications. NREC, as the go-to organization for autonomous robotics and AI prototyping over the past 30 years for DARPA, the U.S. Air Force, Lockheed Martin and others, understands better than most the challenges of scaling up the autonomous robotics and drone systems that we need now for our national security. Steps like 232 tariffs on robotics imports can help reset the economics that depress U.S. robotics and drone investment and production.