Trump Declares Emergency to Block Foreign-Made Grid Equipment
President Donald J. Trump signed Executive Order 14421 on August 26, 2026, declaring a national emergency to protect the United States' bulk-power system from foreign threats. The order, issued under the International Emergency Economic Powers Act and the National Emergencies Act, prohibits the acquisition and use of certain foreign-produced equipment that could pose risks to national security.
The order targets a broad range of equipment, including transformers, inverters, battery storage systems, and software, if they involve any Covered Foreign Entity and present risks such as sabotage or unauthorized access. The Secretary of Energy is tasked with coordinating the implementation of this order, which includes isolating or replacing existing equipment if necessary.
Implementation rules are expected within 120 days. The White House emphasized the growing dependence on electricity, particularly in sectors like advanced manufacturing and defense, as a key reason for the heightened security measures.
Utility Dive reported that U.S. utilities are projected to invest $1.1 trillion in grid infrastructure between 2025 and 2029. The publication also highlighted that China produces over 80% of certain critical grid components, such as lithium-ion battery cells, which could be affected by the new restrictions.
Manufacturers have expressed concerns about the clarity of the order, particularly regarding software and digital products where determining the country of origin can be challenging.