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The Trump administration is about to trigger an investigation that could result in tariffs on imported uranium, according to a new report.
Bloomberg reported Tuesday that the Commerce Department was about to launch an investigation under Section 232 of the Trade Expansion Act on the National Security Risks of Canada. 39, imported uranium. This type of investigation was also the method used by the Trump administration to impose tariffs on imports of steel and aluminum.
US uranium miners Energy Fuels and Ur-Energy have requested the investigation, claiming that the US dependence on foreign uranium poses a threat to national security. Paul Goranson, chief operating officer at Energy Fuels, told Bloomberg that the use of uranium by state companies that "clearly have overall strategic goals different from those we do" should encourage action.
The two companies have publicly mobilized for an investigation under Section 232 since filing a petition in January. In a March editorial for The Hill, Energy Fuels CEO Mark Chalmers and Ur-Energy CEO Jeffrey Klenda warned that without tariffs, the uranium mining industry American could disappear.
"State-owned entities in antagonistic governments are targeting our energy industry and we must ensure that a domestic nuclear fuel cycle, including the extraction of energy, Uranium, survives, "wrote the CEOs. "If we give up the control of an essential fuel to Russia and its allies, the threat to our security is incalculable." According to the US Energy Information Administration, or EIA, only 11% of the uranium delivered to US nuclear reactors came from domestic producers in 2016. Meanwhile, 89% of uranium used in reactors Americans came from foreign suppliers, with 25% of Canada's total, 24% of Kazakhstan, 20% of Australia and 14% of Russia.
There is no timetable for the announcement of an investigation, according to the report. Some officials told Bloomberg that the administration was waiting for the storm on Trump's meeting with Russian President Vladimir Putin to continue.
Secretary of Commerce Wilbur Ross told the Senate Finance Committee on June 20 that a decision on an investigation into uranium imports would come "very soon".
After the report, Energy Fuels and Ur-Energy stocks climbed 20% in trade after hours of opening.
A tariff on uranium imports would be the last protectionist measure of the Trump administration. In addition to steel and aluminum tariffs, the Trump administration has imposed duties of $ 34 billion in Chinese imports to the United States. The administration is also expected to impose tariffs on $ 16 billion of additional Chinese goods.
The Department of Commerce also investigates tariffs on auto imports and parts destined for the United States. A move to restrict auto imports would likely push the United States into a trade war with major allies like the European Union and Canada.
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