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Trump Declares National Emergency, Bans Use Of Foreign Equipment In US Power Grid

The order invokes the International Emergency Economic Powers Act and the National Emergencies Act, describing an 'unusual and extraordinary foreign threat' from bulk-power system equipment produced abroad.

Trump Declares National Emergency, Bans Use Of Foreign Equipment In US Power Grid
The restrictions target transactions involving foreign nationals who pose an undue risk of sabotage.
Photo: PTI

US President Donald Trump on Wednesday signed an executive order declaring a national emergency over the use of certain foreign-made equipment in America's electricity grid, citing cybersecurity and national security risks, the White House said.

What The Order Does

The order invokes the International Emergency Economic Powers Act and the National Emergencies Act, describing an "unusual and extraordinary foreign threat" from bulk-power system equipment produced abroad.

It generally prohibits certain foreign-produced bulk-power system electric equipment, including associated critical software and digital capabilities that could pose cybersecurity or operational risks, from being purchased or installed in the US, or imposes conditions on such purchases where needed.

The restrictions specifically target transactions involving foreign nationals who pose an undue risk of sabotage, unauthorised access or other disruption to critical infrastructure, though the order does not apply to equipment used for local electricity distribution.

The Secretary of Energy has been directed to publish implementing rules, identify risky equipment in consultation with the Cabinet, and prepare recommendations for the White House national security adviser.

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Targeting China, Following Europe's Lead

While the order does not name any country, Reuters described it as Washington's latest move against technology threats posed by China, coming months after the European Commission barred Chinese-made inverters from publicly funded energy projects.

Reports surfaced last year that unlisted communication devices had been found embedded in some Chinese-made solar power inverters by American security researchers examining grid-connected equipment.

Part Of A Wider Pattern

The White House fact sheet framed the order as continuing Trump's broader push to secure critical supply chains, noting his first-term use of Section 232 tariffs on steel and aluminium, and more recent actions extending tariffs to copper, semiconductors, trucks and pharmaceuticals.

ALSO READ: US Weighs More Trade Measures Against Canada After Retaliation

It also cited an April 2025 executive order that kept 17,000 megawatts of power plants online, an June 2026 order on artificial intelligence and cybersecurity, a July 2026 order securing defence supply chains, and an August 2026 proclamation addressing drone imports.

Reliance On Foreign Equipment Called A Vulnerability

The administration argued that America's growing dependence on advanced manufacturing, artificial intelligence and defence production has deepened reliance on foreign components for reliable electricity, creating supply-chain vulnerabilities that could disrupt the availability of such equipment during trade disputes or other disruptions.

The order argues that minimal existing restrictions have allowed some foreign actors to create and exploit vulnerabilities in a system that underpins US national defence, emergency services and the wider economy.

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