U.S. President Donald Trump has announced that the controversial Keystone XL Pipeline project is being reconsidered amid ongoing trade discussions between Canada and the United States to prevent additional U.S. tariffs on Canadian products.
Trump revealed on his Truth Social platform that there are talks of reviving the Keystone XL Pipeline, which had been previously halted by President Joe Biden. He shared an image depicting him lifting a pipeline labeled “KEYSTONE” from a grave, with a backdrop of American flags and a headstone reading “Buried by Biden.”
While Trump made the claim, Canada has not publicly responded to the project’s potential revival within the context of trade negotiations. The U.S. government has temporarily halted planned 50% tariffs on various Canadian goods for three days to facilitate further talks.
The history of the Keystone XL expansion dates back to its initial proposal in July 2008 during the tenure of former Canadian Prime Minister Stephen Harper and U.S. President George W. Bush. The project faced opposition over the years, including protests and legal challenges, ultimately leading to its cancellation by President Obama in November 2015.
Subsequent developments under the Trump administration, including executive orders and legal battles, followed until the project was terminated by TC Energy in June 2021. However, recent discussions indicate a renewed interest in the project, with Trump authorizing a proposed oil pipeline from Canada to Wyoming in April 2026.
South Bow, a key player in the project, is considering the Prairie Connector pipeline, which would utilize sections of the original Keystone XL pipe. The company has reached settlements related to the 2022 oil spill in Kansas, demonstrating continued engagement in the energy sector.
Trump’s recent statement hinting at the revival of the Keystone XL project coincides with the temporary suspension of new tariffs on Canadian goods, underscoring the potential significance of the pipeline in ongoing trade negotiations.