New executive order tightens defense supply chain waiver rules

Personnel assigned to the Joint Tactical Networking Center participate with industry in a Sensor Open Systems Architecture dry run at JTNC on Naval Base Point Loma, July 14, 2026. (U.S. Navy photo by Keypher Strombeck, contractor)

By Jarrett Renshaw • Jul 21, 2026

President Donald Trump on Monday signed an executive order making it harder for U.S. defense contractors to obtain waivers allowing them to buy critical minerals and other materials from China and other prohibited foreign suppliers, the administration’s latest effort to reduce reliance on overseas supply chains for weapons production.

The new rules mean defense contractors will have to do much more than simply show that a Chinese supplier is the easiest or cheapest option.

Companies seeking a waiver will need to prove they searched for alternatives, explain where their materials come from and lay out a plan to move away from prohibited suppliers. Contractors will face the loss of contracts if they don’t prove they are doing enough to source domestically.