The North American uranium market is grinding to a standstill as US nuclear power companies, rattled by President Donald Trump’s looming tariff threats, hit pause on new purchases and contracts.
With a 10% tariff on Canadian energy exports set to take effect on April 2, US utilities have slashed uranium purchases by half, according to pricing firm TradeTech. Reactor operators—normally reliant on long-term contracts—are opting to wait and see how the tariff situation unfolds before committing to new deals.
A Key Sector at Risk
Few industries are as exposed as US nuclear power, which sources over a quarter of its uranium from Canada, more than any other supplier. The uncertainty surrounding these tariffs has made buyers hesitant, raising concerns about a future supply crunch once utilities begin depleting existing inventories.
Complicating matters further, utility executives are struggling to balance expansion plans with fluctuating electricity demand, especially with the rise of energy-hungry data centers.
“Utilities are waiting to see what this all means before they take action,” said Karen Radosevich, nuclear fuels supply manager at Entergy Corp., which operates four reactors across Arkansas, Mississippi, and Louisiana.
Market Jitters Hit Uranium Stocks
Investor confidence has taken a hit. A leading uranium-focused exchange-traded fund (ETF) has plunged 16% this year, more than double the decline of the S&P 500 Index. Major uranium producers are also feeling the heat—Cameco Corp., the world’s second-largest uranium miner, is down 21%, while uranium futures have plummeted 40% from their 2024 peak.
Despite the turmoil, there’s no immediate fuel shortage risk. Uranium supply contracts are long-term, and US utilities are well-stocked through most of 2026, according to Cameco CFO Grant Isaac. However, if the standoff drags on, supply concerns could resurface.
Scrambling for Solutions
Some utilities aren’t waiting to find out. Entergy accelerated its Canadian uranium deliveries weeks ago after Trump postponed the tariff deadline, Radosevich revealed.
“We’re looking at everything we can do within our current contracts,” she said. “But we’re not looking to sign new long-term deals.”
With 94 nuclear reactors, the US is the world’s largest uranium buyer, importing 95% of its nuclear fuel from foreign sources. The prospect of retaliatory tariffs from Canada, particularly on uranium from high-grade mines in Saskatchewan, could further shake up the market.
Uncertainty Breeds Paralysis
Initially, Trump floated 25% tariffs on Canadian uranium before reducing them to 10% and delaying implementation twice. The back-and-forth has left utilities in contracting limbo—US operators typically buy 5–8 million pounds of uranium per month, but 2025 has seen an unusually quiet market, according to Jonathan Hinze, president of UxC LLC, which tracks uranium pricing.
“We’ve seen nothing close to that amount in contracts being signed,” Hinze said. “Utilities still need to secure supply for 2027 and beyond, but the uncertainty is keeping them on the sidelines.”
Adding to the complexity, contract renegotiations under the 2018 NAFTA overhaul shifted tariff costs from uranium producers to utilities. That means companies like Entergy—which serves three million US customers—could bear the financial burden if tariffs are imposed.
John Ciampaglia, CEO of Sprott Asset Management, which runs the world’s largest physical uranium trust, described the situation as total market paralysis.
“With no clear direction—tariffs on today, tariffs off tomorrow—buyers are frozen,” he said. “There are just too many ‘what-if’ scenarios to navigate.”
As the April 2 deadline looms, all eyes are on Washington and Ottawa. Will a last-minute deal avert the tariffs, or will the uranium market remain trapped in uncertainty?
