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President Trump Declares National Energy Emergency to Restrict Foreign-Made Electrical Equipment

President Trump declared a national emergency to secure the United States bulk-power system by restricting foreign-made electrical equipment that poses national security and cybersecurity risks. The administration announced that the order blocks the purchase, importation, transfer, or installation of foreign-produced equipment that could allow unauthorized access or sabotage. The order specifically targets transactions initiated after August 26, 2026, and covers critical infrastructure components operating at 69 kV or higher, including substation transformers, reactors, capacitors, grid-connected inverters, and battery energy storage systems. The order focuses on entities tied to 24 countries under U.S. arms embargoes or strict sanctions lists, with a particular focus on Chinese-made equipment. The administration announced that the Department of Energy has 120 days to publish rules to implement the order. While the order does not categorically prohibit all foreign equipment, it gives the Department of Energy authority to impose conditions on equipment already installed and operating. The order addresses the rapid growth of advanced manufacturing, data centers, and artificial intelligence, which have increased the nation's dependence on reliable electricity. The administration announced that the Department of Energy may carve out exceptions or impose conditions as needed to protect the security and integrity of the power grid.

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