Trump Rejects Uranium Section 232 Restrictions
President Donald Trump rejected implementing quotas or tariffs on imported uranium used for nuclear power plants -- a decision sure to please Canada, as it is the most significant source of U.S. imported uranium.
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Trump said the Commerce Department had told him that imported uranium is endangering national security. The memo noted that the large majority of uranium has been imported for a long time -- 85.8 percent of the uranium used in the U.S. was imported in 2009, and it's 93 percent now. He said he doesn't believe there is a threat to national security because of the pattern of imports, but said, "I agree with the [Commerce] Secretary that the United States uranium industry faces significant challenges in producing uranium domestically and that this is an issue of national security." So Trump said officials from the Commerce, Energy, Interior, Treasury, Defense and State departments, as well as White House national security, economic and science advisers and officials from the Nuclear Regulatory Commission and Federal Energy Regulatory Commission will meet as a working group. They will have 90 days to develop recommendations on whether there need to be ways to support more domestic fuel production.
The two companies that asked for import protections said they will support the working group's work.
“Although we hoped for a different outcome, we appreciate President Trump’s and Secretary [Wilbur] Ross’s consideration of the Section 232 petition,” Ur-Energy CEO Jeffrey Klenda said. “We firmly believe a healthy nuclear fuel cycle, beginning with a sustainable uranium mining industry, is imperative to national security. As the Trump Administration broadens its review of ways to revive and expand domestic uranium production, we will continue our work alongside the Administration and with our customers to find solutions to correct the dysfunctional market. We will continue to examine all alternatives.”
A major Canadian uranium mining company hailed the news. About 25 percent of its sales go to U.S. nuclear power plants. “With operations on both sides of the border, Cameco also sees tremendous value in increasing cooperation between the United States and Canada to address critical mineral issues and strengthen security of supply on a North American, rather than strictly national, basis,” Cameco CEO Tim Gitzel said. “The recent commitment by President Trump and Prime Minister [Justin] Trudeau to develop a joint action plan on critical minerals collaboration is an excellent initiative, and we see uranium being a key component of that strategy.”