Trump Bans Defense Sourcing From Adversaries to Secure Supply Chains

On July 20, 2026, Donald Trump signed an executive order and a separate proclamation to eliminate U.S. military dependence on adversarial nations, specifically China, Russia, Iran, and North Korea. The executive order, effective January 1, 2027, prohibits defense contractors from sourcing critical minerals and rare earths from these countries and restricts the Department of Defense from issuing sourcing waivers unless contractors provide formal mitigation plans. The order mandates a comprehensive mapping of the industrial base to identify vulnerabilities and accelerate the testing of domestic replacement materials.

Simultaneously, Trump issued a proclamation under the Trade Expansion Act of 1962 to bolster the domestic aluminum industry. The directive directs the Department of Commerce to create an incentive program where companies investing in U.S. aluminum smelters can import primary aluminum at half the standard Section 232 tariff rate.

By August 2026, these policies were accelerated by a war with Iran that depleted munitions for F-35 jets and Tomahawk missiles. In response, the Department of Defense provided a $500 million loan to Phoenix Tailings to expand its refinery in New Hampshire, aiming to scale production of neodymium and praseodymium to 120 tonnes by 2028. Additionally, Arnold Magnetic Technologies shifted its samarium sourcing from China to Solvay in France. Despite these efforts, officials warned that achieving full independence for materials like tungsten by the January 2027 deadline remains a significant challenge.