Uranium miners sink on US tariff fears
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The news: Uranium miners Deep Yellow and Paladin Energy were the two worst performing ASX 200 companies in early afternoon trading, as new US tariffs threaten to slow purchases of the nuclear fuel and delay new contracts.
The numbers: Australia's three largest uranium stocks Deep Yellow (-5.9%), Paladin Energy (-5%) and Boss Energy (-2.8%) were all trading lower at 2pm AEDT.
US utility purchases of uranium have halved as the imposition of Trump’s 10% levy on Canadian energy exports approaches, Bloomberg reported, citing TradeTech data.
Trump initially threatened 25% tariffs on Canadian uranium and other energy imports before reducing that figure to 10% and delaying the levies twice.
The context: Uncertainty about the scope and duration of new levies, set to start on 2 April, has discouraged buyers of the reactor fuel.
The emerging trade was has complicated decision making for utility companies as they balance expansion plans with conflicting signals on electricity demand for data centres.
The US is the world’s largest uranium buyer, with the country sourcing 95% of nuclear fuel abroad.
The source: Bloomberg
