New national emergency EO restricts certain foreign bulk‑power equipment imports and directs DOE to implement supply‑chain controls.

1. What changed

The President signed an Executive Order (EO) declaring a national emergency under the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act with respect to foreign-produced bulk-power system electric equipment. The EO:

• Generally prohibits certain foreign-produced bulk-power system electric equipment (including associated critical software and digital capabilities) from being purchased or installed in the United States if it poses specified national security risks.
• Authorizes the Secretary of Energy, in consultation with other agencies, to review, restrict, condition, or prohibit covered transactions involving such equipment.
• Directs the Secretary of Energy to issue rules to operationalize and implement the EO and to identify bulk-power system electric equipment that may pose unacceptable risks.

While the fact sheet does not explicitly mention tariffs, HTS codes, or Chapter 99 provisions, the EO is an import- and supply-chain–focused national security measure that will directly affect the admissibility and use of certain foreign-origin bulk-power equipment in the U.S. market.

2. Affected products

The EO targets “bulk-power system electric equipment” used in the United States, including associated critical software and digital capabilities, where such equipment is produced abroad and involves foreign nationals that may pose:

• An undue risk of sabotage, unauthorized access, or other disruption;
• An undue risk of catastrophic effects on the security or resiliency of U.S. critical infrastructure; or
• An unacceptable risk to the national security of the United States.

The fact sheet does not provide HTS codes or a detailed product list, but based on the description, affected categories are expected to include, once defined in DOE rules:

• High-voltage transmission equipment (e.g., transformers, circuit breakers, switchgear) used in the bulk-power system.
• Protection and control systems, relays, and related digital/SCADA components used in bulk-power operations.
• Software, firmware, and digital control systems integral to bulk-power system operation.

The EO explicitly does NOT apply to facilities used for local distribution of electric energy (i.e., it is focused on the bulk-power system, not local distribution networks).

Because no HTS codes are specified in the fact sheet, importers cannot yet map this directly to tariff classifications; that will depend on forthcoming DOE regulations and any subsequent CBP guidance.

3. Rate changes

• The fact sheet does not announce any specific tariff or duty rate changes, nor any new or modified HTS or Chapter 99 provisions.
• Instead, the EO operates as a national security–based restriction/conditioning regime on certain foreign-origin bulk-power system equipment, potentially affecting admissibility and use rather than duty rates.
• The document also notes that the President has used Section 232 to impose and strengthen tariffs on various goods (steel, aluminum, copper, polysilicon, trucks, automobiles, timber, lumber, semiconductors, pharmaceuticals), but this fact sheet does not specify new Section 232 tariff rates or HTS lines tied to this particular EO.

4. Dates

• EO signing date: August 26, 2026 (date of the fact sheet).
• Effective date: The national emergency and EO authorities are effective upon signing; however, practical import and procurement impacts will depend on:
• DOE’s implementing rules; and
• Any specific determinations or lists of covered equipment and foreign suppliers.
• Expiration date: Not specified; national emergencies typically remain in effect until terminated or modified.
• Forthcoming deadlines: The fact sheet states that the Secretary of Energy is directed to publish rules and identify risky equipment, but it does not provide explicit rulemaking deadlines or compliance transition dates.

5. Required actions for importers, brokers, and compliance teams

Until DOE issues implementing regulations, actions are primarily preparatory and risk-based:

A. Supply chain mapping and risk assessment

• Identify all imported bulk-power system electric equipment in your portfolio that is used in U.S. bulk-power applications (not local distribution), including:
• High-voltage transformers, breakers, switchgear, reactors, and related hardware.
• Protection and control systems, relays, SCADA/EMS components, and digital control equipment.
• Embedded software, firmware, and remote access capabilities.
• Map country of origin, manufacturer, and any foreign ownership/control for these products.
• Flag equipment sourced from jurisdictions or suppliers that may be more likely to be scrutinized under national security criteria.

B. Contract and procurement planning

• Review existing and planned procurement contracts for bulk-power system equipment to:
• Include clauses allowing substitution or termination if the equipment becomes restricted under DOE rules.
• Require suppliers to disclose origin, ownership, and cybersecurity posture of hardware and software.
• Avoid entering into long-term commitments for foreign-origin bulk-power equipment from higher-risk sources until DOE guidance clarifies permissible transactions.

C. Compliance coordination with DOE and CBP

• Monitor DOE rulemaking and any Federal Register notices implementing the EO, including:
• Definitions of “bulk-power system electric equipment.”
• Criteria for “undue risk” and “unacceptable risk.”
• Lists of prohibited or restricted suppliers, countries, or product types.
• Licensing, authorization, or mitigation mechanisms (e.g., conditions on installation, software updates, remote access controls).
• Once rules are issued, coordinate with customs brokers to:
• Align import documentation with any new declarations or certifications required for covered equipment.
• Ensure that any CBP holds, exams, or admissibility reviews related to bulk-power equipment are promptly addressed.

D. Cybersecurity and operational controls

• For existing foreign-origin bulk-power equipment already installed:
• Conduct cybersecurity risk assessments focusing on remote access, firmware integrity, and supply-chain vulnerabilities.
• Prepare for potential DOE-imposed conditions on continued use (e.g., software patching, network segmentation, monitoring, or phased replacement).

E. Internal governance and recordkeeping

• Establish an internal review process for any new procurement or import of bulk-power system equipment that:
• Screens for potential EO coverage.
• Documents risk assessments and decision-making.
• Maintain detailed records of origin, suppliers, and technical specifications to respond quickly to any DOE or CBP inquiries.

6. References

• White House Fact Sheet: “President Donald J. Trump Declares a National Emergency to Secure America’s Bulk-Power System” (August 26, 2026)

(URL not provided in the text; users should search the White House website or Federal Register for the EO text and associated fact sheet.)

• Executive Order text: The binding legal requirements will be in the EO itself and DOE’s implementing regulations, which will be published in the Federal Register.

7. Anticipated regulatory and trade impacts

Although the fact sheet does not yet specify tariffs, HTS codes, or Chapter 99 provisions, the EO is likely to have the following import-related impacts once implemented:

• Admissibility controls: Certain foreign-origin bulk-power equipment may be effectively barred from U.S. projects or subject to case-by-case review, even if not formally prohibited from entry at the border.
• Licensing/authorization: DOE may establish a process to authorize specific transactions subject to mitigation measures (e.g., cybersecurity controls, onshore configuration, or monitoring).
• Supplier blacklists or country-based restrictions: DOE, in coordination with national security agencies, may identify specific foreign suppliers or countries whose equipment is presumptively high-risk.
• Indirect tariff/HTS effects: While not a tariff measure per se, restrictions may shift sourcing toward domestic or alternative foreign suppliers, potentially interacting with existing Section 232 tariffs on steel, aluminum, and other inputs used in bulk-power equipment.

8. Practical next steps for trade compliance teams

• Designate a cross-functional task force (trade compliance, procurement, IT/cybersecurity, engineering) to track and implement EO-related requirements.
• Subscribe to DOE, DHS, and Federal Register alerts for:
• DOE rules implementing the bulk-power EO.
• Any lists of covered equipment, suppliers, or countries.
• Prepare to update internal import manuals and broker instructions once DOE and CBP issue concrete guidance.
• For critical projects with long lead times (e.g., large transformers, HV substations), build contingency plans for alternative sourcing or design changes if certain foreign equipment becomes restricted.

Because the fact sheet does not provide HTS codes or specific tariff lines, importers must wait for DOE’s implementing rules and any CBP guidance to understand precise classification or Chapter 99 implications. However, the EO clearly signals that foreign-origin bulk-power system equipment will face heightened national security scrutiny, and importers should begin risk mapping and contingency planning now.