The move, done via executive order, is expected to precede a ban on U.S. firms doing business with the Chinese telecommunications company Huawei, though the order does not refer to Huawei directly.
The order authorizes the Commerce Secretary Wilbur Ross, in consultation with other top officials, to block transactions that involve information or communications technology that "poses an unacceptable risk to the national security of the United States."
The announcement has been under discussion for a year. It comes as the U.S and China remain locked in a trade dispute and could escalate tensions between the worlds two largest economies.
The order has been opposed by small rural carriers, who continued to rely on Huawei equipment even after it was largely dropped by the larger telecommunications companies.
In a statement, White House press secretary Sarah Huckabee Sanders wrote that the administration will "protect America from foreign adversaries who are actively and increasingly creating and exploiting vulnerabilities in information and communications technology infrastructure and services in the United States."
Trump has pushed allies around the world not to adopt the companys next generation 5G network technology, which American officials have warned could be used for spying by the Chinese. Huawei has forcefully denied the allegation.
In January, the Department of Justice announced a slew of charges against the firm, including for stealing trade secrets from T-Mobile USA. And both Huawei and ZTE, another Chinese telecom company, were barred from most U.S. government contract work by the 2019 Defense Authorization Act.
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