WASHINGTON (Reuters) – The U.S. Commerce Department on Thursday formally placed Huawei Technologies Co Ltd and 68 affiliates in more than two dozen countries on its so-called “Entity List” – a move that bans the telecom company from buying parts and components from American firms without U.S. government approval.

The order takes effect immediately, a Commerce Department spokesman said, and includes non-U.S. Huawei affiliates in Canada, Japan, Brazil, the United Kingdom and Singapore, among others.

The U.S. government will review requests for approvals for transactions under a “policy of presumption of denial.”

The order says U.S. government representatives determined Huawei has been involved in activities contrary to the national security or foreign policy interests of the United States.

As an example, the order cited a criminal case pending against the company in federal court in Brooklyn, New York, over allegations Huawei violated U.S. sanctions against Iran. Huawei has pleaded not guilty in the case.

Members of Congress and administration officials said the move will make it difficult for Huawei to sell many products because of key U.S. suppliers.

Washington lawyer Douglas Jacobson, a trade expert, said there will be collateral impact on the U.S. companies that sell to Huawei.

“While the intent is to punish Huawei, ultimately U.S. companies are also being penalized,” Jacobson said.

Given the order, he said, the likelihood that Commerce will grant licenses to allow sales is negligible.