Trump Signs Order Restricting Defense Sourcing From Adversaries

President Donald Trump signed an executive order on July 20, 2026, to secure military supply chains against physical, cyber, and economic subversion. Effective January 1, 2027, the order tightens rules for defense contractors seeking waivers to purchase critical minerals and materials from prohibited foreign suppliers, specifically China, Russia, Iran, and North Korea.

Under the new mandate, the Department of War must cease issuing waivers unless contractors provide a formal mitigation plan, disclose material origins, and prove they searched for alternatives. Prime and subcontractors are required to map critical supply chains from raw materials to end-use products via an indentured Bill of Materials. Failure to comply or qualify alternative sources may result in the loss of contract opportunities or contract termination.

Secretary of Defense Pete Hegseth is directed to accelerate the testing and qualification of replacement source materials, with a strategy for domestic sources due within 90 days. The order also tasks the Department of War with mapping lower tiers of the industrial base to identify vulnerabilities. White House senior counselor Peter Navarro described the initiative as "battlefield preparation" intended to eliminate American dependencies on foreign-controlled suppliers.