The order, which would not name specific countries or companies, has been under consideration for more than a year, but has been repeatedly delayed, the sources said, asking not to be named because the preparations remain confidential.
However, analysts suggest it is mainly directed at Chinese telecommunications giant Huawei.
Huawei is a tool of the Chinese government. That would likely include the parameters under which a company can be deemed to pose a national security risk.
With Huawei on the Entity List, U.S. suppliers will need to apply for licenses to provide the Chinese company with anything subject to U.S. export control regulations. Huawei vehemently denies involvement in Chinese spying.
At a hearing on May 14, US senators raised alarm about allies using Chinese equipment in 5G networks.
No US government agency can use Huawei's products.
Trade talks between the US and China are teetering after Beijing reneged on tentative agreements, according to the president and American officials.
This escalated a damaging trade war which only recently seemed to be nearing a conclusion.
The officials asked not to be identified discussing the order because it concerns national security. His comments were the first time the USA warned an ally that it faces recriminations for associating with Huawei.
Prosecutors also charged its chief financial officer with wire fraud and bank fraud and alleged that the company violated sanctions against Iran.
Meng remains under house arrest in Vancouver while the legal proceedings unfold.
The United Kingdom is now deciding how much Huawei equipment it will use for the deployment of its 5G networks.
The Trump administration on Wednesday took aim at China's Huawei Technologies Co Ltd, banning the firm from buying vital US technology without special approval and effectively barring its equipment from USA telecom networks on national security grounds.
The administration official said Wednesday that the Commerce Department was expected to take as long as six months to fashion an approach to the order, so there might not be an immediate effect.