No, that isn't going to happen. The US can't afford to lose the AI race and US companies that can't compete will get thrown under the bus and replaced with those that can.

The DHS order only bans buying DeepSeek products directly (e.g. doing inference on their China hosted servers). It does not apply to open weights at all. And DeepSeek just gave their response to the DHS order.

From government and regulated places perhaps but a large portion will not care

Yeah, but they can't ban the rest of the world from using it :)

Isn’t this a ban on it being used by the state, rather than people/civilians?

Thats like sticking your head in the sand :)