Transformer Stocks Rise: CG Power, GE Vernova, Hitachi Energy India Gain After Trump Restricts China-Linked Grid Equipment

Shares of Indian power equipment manufacturers, including CG Power, GE Vernova, Hitachi Energy India and Transformers and Rectifiers (India), gained in Thursday’s trading session after US President Donald Trump announced measures targeting certain foreign-made equipment used in the country’s electricity grid.

CG Power led the gains among the sector’s stocks, climbing as much as 4%, while GE Vernova rose around 3%. Transformers and Rectifiers (India) advanced 2.71%, and Hitachi Energy India gained 2.13%.

Trump order targets foreign grid equipment

Trump signed the executive order on Wednesday, declaring a national emergency over what his administration described as security risks associated with foreign-made bulk-power system equipment.

The latest move forms part of Washington’s broader efforts to limit potential technology and national security risks linked to China. Earlier this year, the European Commission had also moved to restrict Chinese-made inverters in publicly funded energy projects.

However, the US order does not amount to a blanket prohibition on foreign-made electricity equipment. Instead, the Department of Energy will determine which foreign entities and equipment could pose national security risks.

The department can also identify approved equipment and suppliers through a pre-qualification process.

Indian manufacturers could gain US opportunities

The restrictions are being viewed positively by Indian power equipment companies because tighter scrutiny of Chinese suppliers could create additional opportunities for manufacturers from countries such as India.

Transformers and related grid equipment are expected to remain important as the US upgrades its electricity infrastructure and expands power generation capacity.

Reduced competition from Chinese suppliers could potentially improve market access for other international manufacturers.

Concerns over Chinese equipment have previously surfaced in the US energy sector. Reuters reported last year that US experts had discovered communication devices in some Chinese-made solar inverters that were not disclosed in product documentation.