U.S. President Donald Trump has announced the potential revival of the controversial Keystone XL Pipeline project amid ongoing trade negotiations between Canada and the United States to prevent new U.S. tariffs on Canadian products.
In a post on his Truth Social platform, Trump expressed optimism about resurrecting the Keystone XL Pipeline, which he claimed was previously halted by President Joe Biden. The announcement was accompanied by an AI-generated image depicting Trump lifting a pipeline labeled “KEYSTONE” from a grave, with American flags in the background and a headstone reading “Buried by Biden.”
While Canada has not publicly responded to Trump’s statement, Washington revealed a temporary pause on planned 50 per cent tariffs on various Canadian goods to facilitate further discussions.
The history of the Keystone XL expansion dates back to its initial proposal in July 2008 under Prime Minister Stephen Harper and U.S. President George W. Bush. Despite facing opposition, the project progressed through various stages until its ultimate rejection by President Barack Obama in November 2015.
Following subsequent developments, including legal challenges and regulatory processes, President Trump issued a new permit in March 2019 to expedite the project. However, the initiative faced hurdles and was eventually terminated in June 2021 by TC Energy.
In February 2025, Trump, now serving a second term, urged the company behind Keystone XL to resume construction. Despite South Bow’s shift away from the project, discussions between Canadian Prime Minister Mark Carney and Trump in October 2025 indicated renewed interest from Canada in the pipeline.
On April 30, 2026, Trump signed an order authorizing a proposed project for transporting Canadian oil across the border, aiming to revive parts of the Keystone XL Pipeline in collaboration with Bridger Pipeline.
As of May 2026, South Bow is considering the Prairie Connector project, a potential 550,000-barrel-per-day pipeline from Alberta to Wyoming. The company has also reached a settlement with the U.S. government over the 2022 oil spill in Kansas, agreeing to pay civil penalties and fund restoration initiatives.
In August 2026, Trump hinted at the revival of the Keystone XL project while agreeing to delay imposing new tariffs on Canadian goods, with no mention of the pipeline in Carney’s statement regarding the tariff postponement.