Recent developments in the uranium market have raised concerns for Canadian miners as they ramp up production to meet increasing U.S. demand. Following significant supply curbs from Russia, which has historically supplied a quarter of the U.S.'s uranium, Canadian companies are stepping up their output. Shares of uranium firms in both Toronto and New York have seen a notable rise in response to these market shifts. However, looming threats of a 25% tariff on goods from Canada and Mexico, proposed by former President Trump, could complicate this dynamic. If implemented without exemptions, these tariffs could inflate uranium prices, impacting the profitability of Canadian exports to the U.S. [887799dc]
In light of these potential tariffs, Canada is considering retaliatory measures, including export taxes on uranium, oil, and potash. Prime Minister Justin Trudeau's government views these taxes as a last resort, aiming to avoid a trade war while preparing for potential negotiations. Such export levies could significantly increase costs for U.S. consumers and businesses, given that Canada is the largest external supplier of both oil and uranium to the United States. [5e147c96]
The recent surge in bids for uranium delivery in November 2025, which skyrocketed from $4 to $84 per pound following Russia's restrictions, indicates a volatile market environment. Jason Barnard of Foremost Clean Energy has predicted that these developments will exert upward pressure on uranium prices, further complicating the landscape for Canadian miners. Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe have expressed strong opposition to the idea of export taxes, labeling them a 'terrible idea.' As the U.S. seeks to bolster its domestic uranium supply amidst geopolitical tensions, the interplay of tariffs and market demand will be crucial in shaping the future of uranium trade between Canada and the United States. [887799dc][5e147c96]