More and more American companies and industries are suffering from the unreasonable tariffs imposed by the Donald Trump administration. Another «victim of» tariffs is Tesla, which is run by one of the most ardent supporters of the current US president. This time, it is not about electric vehicles, but about humanoid robot Optimuswhose entry into the market may be significantly delayed due to tariffs.
Elon Musk called the difficulties in the production of the Optimus robot «a problem with magnets». In early April, China banned the export of seven rare earth metals in response to President Trump’s 54% tariffs on Chinese goods. These materials are used not only in global chip supply chains, but also in many high-tech industries, including lasers, radars, jet engines, and more.
«We are working on this with China. Hopefully, we will get a license to use rare earth magnets», — said Elon Musk. — «China wants assurances that these magnets will not be used for military purposes, and this is obviously not the case. They are simply intended for a humanoid robot».
However, even if Optimus is designed to perform household tasks, the very fact of its anthropomorphic design makes it potentially suitable for other tasks — in particular, those that China may classify as «military applications». In addition, other Musk companies, such as SpaceX, have active contracts with the US military. Musk also works closely with the US president through the so-called Department of Government Effectiveness (DOGE). This may be a reason for Beijing not to issue licenses to any entity associated with Musk to use these important materials.
Some companies are already looking for alternatives to Chinese sources of rare earth metals. However, it will not be easy to find a full-fledged replacement with the same price and quality, as China has invested heavily in their extraction. In 2023, China produced about 70% of all rare earth elements on the market, including 94% of global supplies of gallium — a key component for powerful microchips — in China.
Many exporters are already expecting delays due to China’s new requirements. However, Tesla (whose profits fell by 71%) was one of the first companies to publicly announce the impact of the Chinese ban on its production plans Tesla and SpaceX complained about duties more than a month ago. Musk also noted that Trump’s duties have significantly affected Tesla’s energy business, as the company imports batteries from China.
Source: tomshardware