Commodities August 26, 2026 04:18 PM

White House Moves to Bar Certain Foreign Equipment from U.S. Power Grid

Executive order declares national emergency and restricts purchases and installations of specific foreign-produced bulk-power hardware and software

By Avery Klein
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The president signed an executive order declaring a national emergency over perceived foreign threats from some foreign-produced bulk-power systems, banning specified foreign-made electric equipment and related software from being purchased or installed in the United States and directing the Energy Secretary to set conditions on existing equipment use.

White House Moves to Bar Certain Foreign Equipment from U.S. Power Grid
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Key Points

  • The president signed an executive order declaring a national emergency over an "unusual and extraordinary foreign threat" linked to some foreign-produced bulk-power systems.
  • The order prohibits certain foreign-produced bulk-power system electric equipment and associated critical software and digital capabilities from being purchased or installed in the United States.
  • The U.S. Energy Secretary is directed to set conditions on the continued use and operation of such equipment to address concerns identified by the administration.

President Donald Trump signed an executive order on Wednesday that restricts the use of certain foreign-produced equipment on the U.S. electricity grid, the White House announced.

The order formally declares a national emergency concerning what the administration described as "the unusual and extraordinary foreign threat" posed by some bulk-power systems manufactured abroad. That language frames the administration's view that certain foreign-produced grid equipment could introduce national security vulnerabilities.

The directive bars the purchase or installation in the United States of specified foreign-produced bulk-power system electric equipment. It also covers associated critical software and digital capabilities tied to that equipment - categories the White House said could introduce cybersecurity or operational risks to U.S. power infrastructure.

In addition to the prohibitions, the order instructs the U.S. Energy Secretary to impose conditions on the continued operation and use of such equipment already in service. The administration said those conditions should address concerns it has identified about the equipment's security implications.


Context and implications

The order targets a narrow set of bulk-power system electric components and their related software, according to the White House statement. It is intended to prevent procurement and installation of items judged to present cybersecurity or operational vulnerabilities, and to give the Energy Secretary authority to regulate the future use of qualifying equipment.

The measure does not provide additional specifics about which manufacturers, models or countries are covered, nor does it detail the timeline or technical criteria the Energy Department will use to implement the conditions requested by the president. The White House statement emphasized the potential risks tied to certain foreign-produced hardware and software without listing further particulars.


The administration's order establishes a federal prohibition on certain foreign-made grid components and asks the Energy Department to define and enforce conditions for continued operation of such equipment already in place.

Risks

  • Uncertainty about which specific foreign-produced equipment and software will be covered could create short-term procurement and compliance questions for utilities and grid operators - impacting the energy and utilities sectors.
  • The requirement for the Energy Secretary to impose conditions on existing equipment introduces uncertainty about the future operation and lifecycle of in-service components, potentially affecting asset management and system planning in the power sector.
  • Ambiguity in implementation details leaves open the possibility of operational disruptions while agencies define criteria and enforcement approaches, with potential implications for cybersecurity and infrastructure operations.

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