The integration of tariffs and the EU AI Act creates a challenging environment for the advancement of AI and automation. Tariffs, by increasing the cost of essential hardware components, and the EU AI Act, by increasing compliance costs, can significantly raise the barrier to entry for new AI and automation ventures. European companies developing these technologies may face a double disadvantage: higher input costs due to tariffs and higher compliance costs due to the AI Act, making them less competitive globally. This combined pressure could discourage investment in AI and automation within the EU, hindering innovation and slowing adoption rates. The resulting slower adoption could limit the availability of crucial real-world data for training and improving AI algorithms, further impacting progress.