Toronto — Canada’s uranium miners, confident that only they can meet U.S. demand for the element after Russian supply curbs, have accelerated output and forward contracts to supply U.S energy companies, but they are now worried about possible tariffs from U.S. President-elect Donald Trump.
Shares of uranium companies rallied in Toronto and New York over the last two weeks on news that Russia was planning to restrict the sale of enriched uranium to the U.S.
This week, Trump threatened to slap a 25 per cent tariff on all goods from Canada and Mexico. This could inflate prices of the radioactive material unless uranium receives exemptions.
Canada is the world’s No. 2 producer of uranium after Russia. About 85 per cent of its production is exported. Companies say the commodity is in acute shortage.
Vancouver-based uranium exploration company NexGen Energy is still at least four years away from producing in Canada. Company officials told Reuters they were in advanced discussions about possible off-take agreements with U.S. utility companies that are gearing up to produce more nuclear power to meet growing electricity demand.
“We’ve never been busier on that front, and it has dramatically picked up after the Russian announcement and I would say that the utilities are very keen to see a new Canadian uranium miner to diversify the risk,” said Travis McPherson, Chief Commercial Officer.
Jason Barnard, CEO of Foremost Clean Energy, a uranium exploration company, said further upward pressure on uranium prices was inevitable, adding the U.S. may not be ready for the inflationary impact.
McPherson said Canada and NextGen in particular are in a good position to negotiate any tariff proposals.
“Given the dire need of US nuclear reactors for uranium that powers nearly 20 per cent of their power demand combined with the fact they must rely heavily on imports, Canada (and NexGen in particular) is in a strong position to leverage this reality in any potential negotiations/discussions.”
“The potential tariffs on Canada demonstrate the need for Canada to have indispensable goods that the U.S. industry needs and cannot get elsewhere or domestically. Uranium is one of those very unique goods,” he said.
The U.S. imports a quarter of its uranium from Russia and the rest mainly from Canada followed by Kazakhstan, though it has some domestic production.
Russia said on Nov. 15 it had imposed restrictions on the export of enriched uranium to the U.S., in response to Washington’s ban on imports of Russian pre-enriched uranium. President Joe Biden’s administration had offered waivers allowing for shipments to continue through 2027.
This month US nuclear fuel supplier Centrus Energy announced that its main Russian supplier had canceled exports to the company, adding this loss of Russian supply would affect the company’s ability to meet delivery obligations.
Bids for uranium November 2025 delivery jumped from $4 to $84 a pound after Russia announced its restrictions, market research firm and consultancy UxC said.
Canadian miner Cameco, one of the world’s biggest publicly listed uranium miners, told Reuters it hopes there is “unencumbered” trade in nuclear goods and services between Canada and the U.S. as the country needs a secure western supply of uranium fuel to address its increasing electricity demands.
“The announcement from Russia highlights what we have been saying for some time, that the cumulative risks to the supply of nuclear fuel are significant and that to break the dependence on Russia and other state-owned enterprises, coordinated western responses are required ensuring an industry-led, government enabled secure western fuel supply.”
(Reporting By Divya Rajagopal: Additional reporting by Ernest Scheyder, Timothy Gardener; Editing by Veronica Brown and David Gregorio)
