Two weeks ago, Russia imposed restrictions on enriched uranium exports to the U.S., leading Canadian uranium miners to believe they could meet American demand. In response, companies like Cameco, NexGen Energy (NXE, Financial), and Denison Mines increased production and secured long-term contracts with U.S. energy firms. However, complications arose when U.S. President-elect Trump announced a 25% tariff on all Canadian products.
Following Russia's decision, Cameco, NexGen Energy, and Denison Mines saw their stocks rise by 12.17%, 20.33%, and 14.35%, respectively, but then fell by 3.64%, 6.42%, and 3.77%. Trump's proposed tariffs could increase U.S. prices for uranium, a crucial resource for nuclear energy.
NexGen Energy's Chief Commercial Officer highlighted the urgency of securing Canadian uranium to mitigate risks. With the U.S. heavily reliant on imports for nuclear reactors, Canadian uranium is essential. The tariff threat underscores the need for Canada to supply irreplaceable resources to the U.S.
