Trump Signs Executive Order Restricting Defense Contractors From Chinese Rare Earth on July 20

According to White House officials, President Trump signed an executive order on Monday, July 20, requiring the U.S. Department of Defense to strengthen defense supply chain management and tighten restrictions on contractors purchasing critical minerals and components from China, North Korea, Russia, and Iran.

The order requires defense contractors to prove they have sought alternative suppliers, disclose material origins, and submit plans to reduce foreign dependency. The DoD will audit supply chain tiers covering minerals, magnets, chemicals, forgings, and software. Failure to comply may result in exclusion from government procurement. Separately, MP Materials, which receives U.S. DoD investment (approximately 15% stake), rose 1.01% to $45.70 per share following the announcement. China earlier this month added 10 U.S. firms, including MP Materials and USA Rare Earth, to export restrictions in response to U.S. military-related sanctions.