U.S. Industrial Policy Prioritizes Removal of Untrusted Technology and Allied Cooperation in Physical AI
U.S. industrial policy is currently focused on two main objectives: removing untrusted adversary technology from critical supply chains and fostering cooperation with key security partners, particularly in the realm of physical AI. A presidential proclamation under Section 232 identified robotics imports as a national security threat, initiating a 180-day period for negotiations with trading partners before potential tariffs. The Federal Communications Commission (FCC) has expanded its 'Covered List' to include foreign-produced advanced robotics, requiring them to meet Buy American Act domestic-content standards of over 65%, rising to 75% by 2029. However, these regulations currently lack exemptions for trusted allies, which could inadvertently penalize partners like Japan, a leading producer of precision robotic hardware. Experts suggest creating a 'Trusted Allied Content' credit mechanism within the domestic-content test to allow robots with substantial allied content to avoid being added to the Covered ...
