Trump Declares National Emergency to Secure Grid
WASHINGTON--President Donald Trump has declared a national emergency aimed at limiting the use of certain foreign-made equipment in the U.S. electric grid, citing concerns that components manufactured or supplied overseas could pose a threat to national security and the reliability of the nation’s power infrastructure.
The president issued the order Wednesday, directing the federal government to restrict the purchase and installation of foreign electrical equipment when officials determine that its use could jeopardize the security of the bulk power system or threaten the nation’s electricity supply.
In the executive order, Trump said the foreign supply of electrical equipment represents an “unusual and extraordinary threat” to the United States. The administration argued that foreign-made components incorporated into critical power infrastructure could potentially provide avenues for disruption, surveillance or other forms of interference.
The order gives Energy Secretary Chris Wright broad authority to determine which equipment could present a security concern. Wright is expected to coordinate with other federal officials in evaluating equipment and determining whether restrictions or other measures are warranted.
The directive could affect a broad spectrum of equipment used throughout the nation’s electrical infrastructure. Potentially covered products include substations, transformers, battery energy-storage systems, generators, turbines and software, among other technologies.
The order does not identify a specific foreign government as the source of the threat, nor does it detail individual incidents that prompted the declaration. Instead, it establishes a broader framework allowing the administration to scrutinize foreign equipment based on the potential risks it could pose to the U.S. power system.
The policy could have significant implications for China, which has become a dominant force in several industries that supply equipment and technology used in modern energy systems. China is a major global manufacturer of batteries, solar equipment and other energy-related technologies.
The International Energy Agency reported that China accounts for roughly 80% of global lithium-ion battery supply-chain production capacity and about 85% of solar manufacturing capacity. That extensive industrial footprint has made Chinese companies and supply chains a growing focus of U.S. policymakers concerned about dependence on foreign technology for critical infrastructure.
The Trump administration has repeatedly framed technological competition with China as a national security priority. The White House has pushed for the United States to maintain an advantage in emerging technologies, including artificial intelligence, while simultaneously seeking to expand domestic energy production and reduce perceived vulnerabilities in critical infrastructure.
Trump’s latest action also builds on measures taken during his first administration. In 2020, Trump issued an executive order seeking to protect the U.S. bulk-power system from potential threats associated with foreign adversaries and foreign-supplied equipment.
The new declaration comes as federal and state officials continue to confront cybersecurity threats targeting critical infrastructure across the country. Recent reported cyberattacks against U.S. water systems have raised concerns among officials, with some incidents suspected of being connected to Iranian-linked actors, according to reports by The New York Times.
Although water systems and electric utilities are separate components of the nation's critical infrastructure, cybersecurity officials have increasingly warned that attacks on essential services could produce cascading consequences if adversaries gain access to operational networks.
The electric grid is particularly sensitive because disruptions can affect homes, businesses, hospitals, communications networks, transportation systems and other critical services. The administration's order reflects growing concerns in Washington that vulnerabilities in the increasingly interconnected energy system could be exploited by foreign governments or other hostile actors.
Trump also declared a national energy emergency on his first day back in office, part of a broader effort to increase domestic energy production and strengthen the country's energy infrastructure.
The administration has promoted expanded production of conventional energy sources while taking a more skeptical approach toward renewable energy. At the same time, the rapid growth of battery storage, solar generation and other technologies has created increasingly complex global supply chains, making the origin and security of energy equipment a significant policy issue.
The latest order does not immediately ban all foreign-made equipment from the U.S. grid. Instead, it creates a process through which federal officials can identify equipment considered to present unacceptable risks and impose restrictions on its acquisition or installation.
The administration's approach could ultimately reshape procurement decisions by utilities and energy companies, particularly as the United States seeks to modernize an aging electrical grid while reducing its dependence on foreign supply chains for strategically important technologies.