OTTAWA — Canadian companies that want to be spared from the Trump administration’s new ban on foreign-made robots must justify why they do not already manufacture them in the United States—and must pledge to start doing so soon.

Industry leaders worry the policy may hamstring innovation and growth—and potentially push more of Canada’s tech companies to move operations south of the border.

“This is critical for the future of Canada,” said Ryan Gariepy, chair of the Canadian Robotics Council, a non-profit organization based in Toronto. “This will make it harder for a company in Canada to scale—unless there is a higher adoption of robotics in Canada.”

Last Tuesday, the U.S. Federal Communications Commission (FCC) banned the import, sale and marketing of foreign advanced robotic devices, such as humanoid and quadruped dog-style robots. Devices it previously approved are exempt from the ban. 

The FCC framed the decision as a way to safeguard U.S. economic and national security, citing supply chain resiliency and risks to the cybersecurity of critical infrastructure.

The move was widely viewed as targeting China, which holds about 85 per cent of the market share for humanoid robots. Beijing appeared to see it that way too, saying last week that escalating restrictions on Chinese imports threatens the stability of U.S.-China relations.

Yet the FCC made clear that the rules apply to all countries equally.

A company may request a conditional approval for a new foreign-produced device to get past the ban. The FCC would grant authorization if and when an assessment by the U.S. Department of Defense, now known as the Department of War, concludes the device does not “pose unacceptable risks to the national security of the United States or to the safety and security of U.S. persons.” 

There is a catch. The firm must justify why it doesn’t make the robots in the U.S. already. It must also submit “a detailed, time-bound plan” to establish or expand U.S. manufacturing for the robot in question. That plan must specify whether the firm currently produces or assembles any part of the robotic device in the U.S., including the percentage of U.S. content it contains and the number of facilities and jobs involved. The firm’s promise to expand U.S. operations must include planned capital expenditures, financing and investments over the next one to five years, plus the additional number of employees it expects to hire. The firm has to update the government on its progress every quarter.

The FCC did not respond to The Logic’s questions about whether it would be possible for a company to get conditional approval without moving operations to the U.S.

“It’s really worrying,” said Jayson Myers, executive director of Next Generation Manufacturing Canada (NGen), the industry-led supercluster for the advanced manufacturing sector. “The most innovative companies in Canada see the U.S. as their major market and that’s where they are basing their growth plans … so it really is an issue of concern.”

It is an issue that Hadley Fox, co-founder and chief technology officer at TP7 AI Robotics, is trying to figure out how to navigate. The startup, which grew out of research backed by Nvidia and SFU VentureLabs in Vancouver, has a lab in Boston. It does not make its AI-powered multitasking mobile robots there, but is just starting to introduce them to U.S. factories through pilot programs. In an interview, Fox said the products do not yet have FCC approval, so would be banned.

Fox, who lives in Montreal, said he did anticipate the administration of U.S. President Donald Trump would eventually extend its protectionist approach to robotics. TP7, which was incorporated in 2024, sources much of its hardware from overseas, including China. Fox is exploring ways to switch up its supply chain, but it would be costly. “A lot of these companies moved from [electric vehicle] manufacturing to robotic manufacturing, so they’re really fast, and they’re cheap too,” he said of Chinese suppliers. “We don’t have the capability to match their price at the moment, but it is what it is.”

The ban covers nearly all kinds of autonomous ground mobile robots that weigh at least two kilograms, including docking stations. It would not apply to autonomous cars or trucks, aircraft, submarines or vehicles used on railways. Robotics used in medicine would also get a pass. A new robotic vacuum cleaner, however, could be affected if it were heavy enough.

Matthew Lowe, CEO of Calgary-based ZeroKey, which has sold its AI-powered robotics tech to major manufacturers, including automakers, said he thinks the ban will backfire on the U.S.

“If you want to onshore manufacturing, but then hamstring your manufacturers and make them less competitive by making it harder to get access to the best tools and the best equipment, you’re kind of undermining your own goals,” Lowe told The Logic.

Gariepy of the Canadian Robotics Council suggested that Canada use this as an opportunity to encourage more adoption of robotics—and compete with the U.S. in not just developing, but using, the most advanced technology on the market, no matter its origin. We will be able “to access the best robots in the world, from everybody,” he said, “and we’ll also have the ability to compete and to benchmark against the best in the world when it comes to building our own robotics and robotic technology.”