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| Uranium |
Potential Disruptions to Critical Minerals Trade
The ongoing trade tensions between the U.S. and Canada could significantly impact uranium prices, creating new opportunities for uranium-focused ETFs. With the Biden administration's emphasis on reducing reliance on China for critical minerals, tariffs on Canadian imports could disrupt this strategy, according to the Center for Strategic & International Studies (CSIS).
Canada is the largest supplier of minerals to the U.S., providing key resources such as uranium, aluminum, nickel, steel, copper, and niobium. Any disruption in this trade relationship could jeopardize efforts to secure a stable supply of these materials, particularly uranium, which is essential for nuclear energy production.
U.S. Seeks to Strengthen Domestic Uranium Supply
Former President Donald Trump had supported policies that bolstered uranium as a critical mineral, and a potential return to office could lead to federal subsidies for U.S. uranium mining projects. However, the country remains heavily reliant on foreign sources, with Russia and China controlling over 50% of global uranium enrichment capacity.
CSIS emphasized the importance of U.S.-Canada collaboration to ensure a secure uranium supply chain. Despite efforts to expand domestic uranium production, the U.S. lacks the vast reserves found in Canada, which holds approximately ten times more uranium than the U.S.
For the U.S. to achieve long-term energy stability and national security, maintaining a cooperative trade relationship with Canada will be crucial. Without it, uranium prices could surge, affecting energy markets and nuclear power production.
