Uranium Market Freezes Amid Trump’s Tariff Threats

The North American uranium market has come to a standstill as U.S. nuclear power companies, alarmed by President Donald Trump’s tariff threats, delay new contracts.

U.S. nuclear fuel purchases have plummeted by half as Trump’s 10% tariff on Canadian energy exports looms, according to the latest data from pricing company TradeTech. Reactor operators, who typically rely on long-term contracts, are holding off to see how the tariffs play out.

Few sectors are as vulnerable as U.S. nuclear energy, which relies on Canada for more than a quarter of its uranium supply — more than any other source. Uncertainty surrounding the scope and duration of the tariffs, set to take effect on April 2, has discouraged buyers from purchasing reactor fuel. It also sets the stage for further market disruption when nuclear operators eventually start running down their stockpiles.

The turmoil complicates decision-making for utility leaders trying to balance expansion plans with conflicting signals about electricity demand from data centers.

“Utilities are waiting to see what this all means before they take action,” said Karen Radosevich, Director of Nuclear Fuels Supply at Entergy Corp., which operates four reactors in Arkansas, Mississippi, and Louisiana.

For now, investors remain cautious: a closely watched exchange-traded fund that includes uranium miners has dropped 16% this year — more than double the decline in the S&P 500 index. The world’s second-largest uranium producer, Cameco Corp., is down 21%. Meanwhile, uranium futures have fallen about 40% from their 2024 peak.

There is little immediate risk of U.S. reactors running out of fuel. Given the long-term nature of uranium supply contracts, utilities are well-stocked for this year and most of 2026, said Grant Isaac, Chief Financial Officer of Cameco, during a February event in Florida.

Nevertheless, some utilities have sought to secure uranium access to mitigate potential cost spikes. Entergy began speeding up Canadian uranium deliveries weeks ago after Trump announced a delay in implementing the tariff, Radosevich said.

“We are looking at everything we can do within our contract portfolio,” she added. “But we are not actively pursuing new long-term contracts.”

The U.S. is the world’s largest uranium buyer, home to 94 nuclear reactors that power tens of millions of homes and offices. Most of the material comes from foreign imports, with U.S. utilities sourcing 95% of their nuclear fuel abroad.

Trump initially threatened a 25% tariff on Canadian uranium and other energy products before lowering the rate to 10% and postponing the levy twice. Canada’s government has also threatened to impose export tariffs on uranium from high-grade mines in Saskatchewan. Typically, U.S. reactor operators buy between five and eight million pounds of metal per month, but the start of this year has been “very quiet,” said Jonathan Hinze, President of UxC LLC, a company that tracks uranium prices and market activity.

“We have not seen anything close to that amount in terms of signed contracts,” Hinze noted. “Utilities are currently relatively inactive on the contracting front. There are still many utilities that need to meet fuel needs as early as 2027 or 2028, but the latest market uncertainty is keeping most of them on the sidelines.”

Utilities like Entergy, which powers homes and businesses for three million U.S. customers partly through nuclear plants, would likely bear the additional costs resulting from tariffs. Uranium producers like Cameco had previously factored in tariff costs, but this changed during the renegotiation of the North American Free Trade Agreement (NAFTA) in 2018, when the miner amended contract terms to pass tariff costs onto customers.

“With no clarity and constantly changing rules — tariffs today, tariffs tomorrow — it’s created this complete paralysis,” said John Ciampaglia, CEO of Sprott Asset Management, which operates the world’s largest physical uranium trust. “There are just too many ‘what-if’ scenarios for the market to process simultaneously.”