The Uranium Factor: Why The 500% Tariff Threat By US Is A Cover For Its Dependency On Russia
On January 7, 2026, President Trump endorsed a bipartisan sanctions bill aimed at imposing hefty tariffs on countries like India, China, and Brazil that purchase Russian oil and uranium.
On January 7, 2026, US President Donald Trump endorsed a bipartisan sanctions bill proposed by Senators Lindsey Graham (R–South Carolina) and Richard Blumenthal (D–Connecticut). The bill threatens tariffs of up to 500% on imports from countries such as India, China, and Brazil that continue purchasing Russian oil or uranium.
Formally known as the Russia Sanctions Bill, the legislation aims to penalize nations that indirectly fund Russia’s war in Ukraine by buying its energy resources, including both oil and uranium. While public attention has largely focused on oil trade, the explicit inclusion of uranium highlights a critical vulnerability in global energy supply chains and US strategic interests.
This article examines the uranium factor, its importance to the US economy, and how Washington plans to continue importing Russian uranium even as it pressures other nations to halt purchases, based on information available as of January 9, 2026.
The Russia Sanctions Bill and the Uranium Clause
The Graham–Blumenthal bill, which received Trump’s approval on January 7, 2026, authorises tariffs starting at 500% on goods from countries that “knowingly” purchase Russian crude oil, refined petroleum products, or uranium.
If passed, the bill could be brought to a vote as early as the following week. It targets major buyers such as India, which imports up to 40% of its oil from Russia, China, the largest importer of Russian energy, and Brazil, framing their trade relationships as indirect financing of Russia’s military operations in Ukraine.
Uranium is explicitly mentioned to address Russia’s dominant position in the global nuclear fuel market, where it supplies roughly 20–25% of the world’s enriched uranium. The US views Russian uranium exports as a revenue stream contributing to Moscow’s war effort, similar to oil sales.
Uranium’s Critical Importance to America’s Economy
Uranium is central to US energy security and military readiness, making Russia’s role as a supplier a significant strategic vulnerability.
Nuclear Power Generation: Nuclear energy accounts for about 20% of US electricity, powering more than 90 reactors across 28 states. It plays a key role in grid stability and low-carbon energy goals. Russia supplies roughly 20–24% of US enriched uranium imports, making it the largest foreign source. Any disruption could push electricity prices up by 10–20% in states heavily dependent on nuclear power.
Military and Naval Applications: The US Navy’s nuclear-powered fleet—including 11 aircraft carriers and more than 70 submarines—depends on highly enriched uranium for reactor fuel. Supply chains have historically relied on Russian enrichment services. Russia provides about 14% of global uranium conversion and nearly 44% of enrichment services, both critical for US defence infrastructure.
Advanced Reactors and HALEU: High-Assay Low-Enriched Uranium (HALEU), enriched between 5% and 20% U-235, is essential for next-generation small modular reactors and advanced nuclear designs. These reactors are central to future clean energy and industrial revival plans. Currently, Russia—through state-owned Rosatom—is the only commercial-scale producer of HALEU globally. To reduce dependence, the US Department of Energy awarded $2.7 billion in November 2024 to domestic companies to develop HALEU capacity.
How the US Will Continue Buying Russian Uranium Until 2028
Despite the tariff threats, the US has created exemptions for its own uranium imports through the Prohibiting Russian Uranium Imports Act, signed into law on May 13, 2024.
The law bans unirradiated low-enriched uranium imports from Russia starting August 11, 2024, but allows waivers until January 1, 2028. The Department of Energy can issue waivers when alternative supplies are unavailable or when imports are deemed in the national interest. This framework permits continued imports under phased limits, including approximately 490,000 kilograms in 2025.
The policy is designed to ensure uninterrupted fuel supply while domestic production scales up, with a full ban envisioned by 2040.
Russia’s state nuclear corporation Rosatom plays a central role in global uranium markets. However, claims that it directly finances the Ukraine war are overstated. While its revenues flow into Russia’s state budget—which in turn funds the conflict—it is not a primary or direct war-financing entity.
A Strategic Contradiction
The bill’s combined focus on oil and uranium is intended to curb Russia’s energy export revenues while safeguarding US dominance in nuclear fuel markets. Yet the phased exemptions underscore a clear reality: America remains deeply dependent on Russian uranium, even as it seeks to impose severe penalties on other nations for the same trade.