Trump Declares National Emergency, Bans Certain Foreign-Made Equipment From U.S. Power Grid

President Donald Trump on Aug. 26 signed an executive order declaring a national emergency over the foreign supply of equipment used in the United States’ bulk‑power system and broadly restricting the purchase, importation and installation of certain foreign‑produced grid components and associated software. The order invokes the International Emergency Economic Powers Act and the National Emergencies Act and is aimed at reducing national‑security vulnerabilities linked to foreign suppliers.

The executive order defines “bulk‑power system electric equipment” to include high‑voltage transmission gear, large transformers, utility‑scale inverters, battery storage systems, protective relays, industrial control systems and related software, and says agencies may also consider remote‑access and lifecycle maintenance mechanisms when judging risk. It applies to transactions initiated after the order’s date and allows the Energy Secretary to identify covered foreign entities and equipment that create unacceptable security risks.

Under the order the Energy Secretary — working with other Cabinet officials and intelligence agencies — may prohibit future transactions involving identified equipment and may impose conditions on the continued use, operation, maintenance or updating of foreign‑manufactured gear already in service. The order requires the department to publish implementing rules within 120 days and sets separate timelines for recommending changes to federal procurement rules to prioritize U.S.‑made energy infrastructure.

The White House framed the move as a national‑security step meant to protect the power system that supports defense, emergency services and critical economic activity. Administration materials argue that growth in advanced manufacturing, data centers and AI has magnified the consequences of supply‑chain or cyber vulnerabilities in grid components and that minimal restrictions leave exploitable gaps.

Energy and utility trade groups have warned that tightening limits on foreign suppliers could strain already stretched lead times and raise costs for grid owners, because some critical components have multi‑year delivery timelines and much of the world’s manufacturing capacity for certain parts is concentrated overseas. Industry reaction included caution about balancing security steps with reliability and supply concerns.

Policy and industry analysts noted the order revives and expands themes from earlier U.S. actions to restrict foreign technology in the power sector and follows actions by allies that tightened rules on some Chinese‑made energy equipment. Administration officials and utility executives told reporters the department will try to phase measures to avoid immediate reliability disruptions, but officials said some short‑term operational adjustments are likely.

The order also directs the Energy Department to identify and submit recommendations to the White House on inventory, isolation, monitoring and replacement of at‑risk items, and it authorizes the department and other agencies to establish criteria for pre‑qualifying certain vendors or equipment. The directive includes reporting requirements to Congress and makes clear implementation is subject to applicable law and available appropriations.