On Monday, July 20, 2026, President Donald Trump signed an order aimed at making it more difficult for US defence contractors to obtain waivers for sourcing critical minerals and materials from China and other non-allied foreign nations, including North Korea, Russia, and Iran.

Starting January 2027, firms seeking such waivers must demonstrate exhaustive efforts to find compliant materials or prove that none are available. Contractors will also be required to outline steps and timelines to remove non-compliant sensitive materials from defence supply chains, according to White House trade advisor Peter Navarro.

China remains the world's largest producer and refiner of rare earth elements, essential for high-tech products such as electric vehicles and missile guidance systems. Currently, some rare earth magnets from countries like China can be procured with a waiver.

The order also mandates the defence secretary to require contractors and subcontractors to map key supply chains with national security implications, with guidance to be established within six months.

David Copley, White House senior director of global supply chains, emphasized the importance of supply chain transparency, stating, "America cannot dominate the modern battlefield if the Department of War does not know where its critical materials, components and software come from."

Sources