**Washington**: U.S. power utilities see a 50% drop in uranium purchases ahead of a 10% import tariff on Canadian energy exports. This reliance on Canadian supplies raises concerns about future nuclear fuel availability, amidst intensifying global competition for uranium resources.
Uranium purchases by power utilities in the United States have experienced a significant decline, with transactions dropping by approximately 50% in anticipation of the 10% import tariff imposed by President Donald Trump on Canadian energy exports. Bloomberg reported that this tariff, which is due to take effect soon, has raised concerns among U.S. power utilities, as they obtain more than a quarter of their uranium from Canada. This dependency highlights the potential ramifications of the tariff, as utilities may need to seek alternative sources of nuclear fuel if the tariffs remain in effect for an extended period.
According to data from the Energy Information Administration, the U.S. currently sources 27% of its uranium from Canada, with another substantial portion—25%—coming from Kazakhstan. Russia is the third-largest supplier, contributing 12%, followed by Uzbekistan at 11%, and Australia at 9%. The remaining 16% is sourced from a group of six additional countries, including Germany, Malawi, and Namibia.
The situation stems from a broader trend in the U.S. nuclear industry, where the vast majority of uranium consumed in nuclear reactors has been imported since 1995. This heavy reliance on foreign uranium imports has raised alarms, particularly as the U.S. aims to expand its nuclear power capabilities amid what some are describing as a nuclear Renaissance. Increasing competition for uranium resources poses additional challenges, particularly with countries like Russia and China enhancing their capacities and securing greater access to uranium worldwide.
Cory Kos, the vice-president of investor relations at Cameco—Canada’s largest supplier of uranium—remarked to the Financial Times in February on the limited availability of uranium resources. “We’re on a depletion curve that I don’t think many customers have realised,” he stated, underscoring the escalating competition in an already strained market.
A report by analysts from the Center for Strategic and International Studies emphasised that “Russia and China are rapidly expanding their offtake of mined uranium from international partners, uranium enrichment capabilities, and nuclear infrastructure.” They suggested that to secure the nuclear fuel supply chain, the United States must collaborate with its allies, adopt favourable trade policies, and invest in its domestic enrichment capacity and uranium ore production overseas.
In contrast to this approach, Trump’s administration appears to be favouring a strategy that potentially diminishes collaboration with allies. However, there are indications that some companies are pursuing domestic enrichment solutions. Amir Vexler, president of Centrus Energy, highlighted the importance of nuclear fuel as a “key essential element” for the energy grid, asserting that supply security for such critical resources is vital.
The implications of Trump’s tariff policy have prompted varied perspectives among stakeholders. Some supporters of the tariffs argue that reducing reliance on Canadian imports may incentivise the development of alternative supply chains. Conversely, critics contend that this approach could disrupt the stability of supply and potentially harm the energy sector. As the situation progresses, it will be incumbent upon the consumers—U.S. power utilities—to assess the overall impact of these tariffs on their operations and the availability of nuclear fuel.
Source: Noah Wire Services
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