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President Donald Trump signed an executive order on Monday limiting defense contractors’ waiver access to procure critical minerals and components from foreign entities of concern such as China, in a bid to safeguard domestic end-to-end supply chains.
Beginning Jan. 1, 2027, the defense secretary and military heads will stop issuing waivers for parts or critical minerals made or processed by those foreign entities.
Under a strategic materials law, the Department of Defense is prohibited from acquiring equipment such as aircraft, weapons, ships and tanks, containing components made from foreign entities of concern such as Russia.
The legislation also bans the DOD and defense contractors from using specialty metals not processed or made in the United States. In addition, the law allows the agency and military leaders to issue waivers to companies and their suppliers for parts or materials that are urgently needed for national security, limited sources or are hard to come by.
