According to a White House statement, Mr Trump’s order aims to “protect America from foreign adversaries who are actively and increasingly creating and exploiting vulnerabilities in information and communications technology infrastructure and services”.
It gives the secretary of commerce the power to “prohibit transactions posing an unacceptable risk to the national security”, the statement adds.
The move was instantly welcomed by Federal Communications Commission Chairman Ajit Pai, who said in a statement it was “a significant step toward securing America’s networks”.
The US had already restricted federal agencies from using Huawei products and has encouraged allies to shun them, while Australia and New Zealand have both blocked the use of Huawei gear in next-generation 5G mobile networks.
But Huawei – which is the world’s largest maker of telecoms equipment – has vehemently denied the allegations.