USA, Washington, D.C.: US President Donald Trump declared a national emergency over risks to grid security and cybersecurity from foreign-made power equipment, potentially strengthening the position of manufacturers with domestic production capacity.
The order covers equipment used in transmission systems of 69 kV and above, including power transformers, high-voltage circuit breakers, inverters, battery energy storage systems, generators and industrial control systems. It does not impose a blanket ban on foreign equipment, but gives the US Department of Energy authority to restrict products linked to suppliers or countries considered to present excessive national-security or cybersecurity risks.
The move comes as the US faces growing demand for large power transformers driven by data centres, AI infrastructure, manufacturing expansion, electrification and replacement of ageing grid assets.
Analysts expect manufacturers with existing US production capacity to be better positioned if federal procurement increasingly favours domestically manufactured equipment. Korean suppliers are among those expanding locally, including Hyosung Heavy Industries in Tennessee, HD Hyundai Electric in Alabama and LS ELECTRIC in Utah.
Hyosung has been expanding large-transformer production and testing capacity at its Memphis facility, while HD Hyundai Electric is adding a second Alabama factory. LS ELECTRIC is also increasing US production capacity.
The executive order also directs federal agencies to revise procurement rules to give greater weight to national-security risks and US-made power infrastructure.
Detailed implementing regulations are expected within the coming months.
Source: Chosun
