U.S. President Donald Trump has stated that a controversial oil pipeline project is being reconsidered as part of the ongoing trade discussions between Canada and the United States to prevent new U.S. tariffs on Canadian products.
In a post on his Truth Social platform, Trump mentioned the potential revival of the Keystone XL Pipeline, which had been halted by President Biden. He also shared an image created by artificial intelligence depicting him lifting a pipeline labeled “KEYSTONE” from a grave, with American flags in the background and a headstone reading “Buried by Biden.”
Although Canada has not officially responded to Trump’s claim, Washington announced a temporary pause on planned 50 percent tariffs on various Canadian goods to allow for further negotiation.
The Keystone XL project has a long history, starting with its initial proposal in July 2008 under Prime Minister Stephen Harper and President George W. Bush. The project faced opposition over the years, with protests and legal challenges, leading to President Obama rejecting the pipeline route in January 2012.
President Trump, after taking office, signed executive orders in support of the Keystone XL project. However, it faced setbacks, including a federal judge blocking construction and subsequent efforts to expedite development.
Following Biden’s presidency, the Keystone XL project was terminated in June 2021. TC Energy, the company behind the project, announced plans to file a claim for damages under the Canada-U.S.-Mexico Agreement (CUSMA).
In February 2025, during his second term, Trump expressed support for reviving the Keystone XL project, although TC Energy had moved on. Prime Minister Mark Carney discussed a renewed interest in the pipeline with Trump in October 2025.
In April 2026, Trump authorized a proposed project, working in partnership with South Bow and Bridger Pipeline, to transport Canadian oil, aiming to revive parts of the Keystone XL pipeline.
South Bow indicated it would decide on proceeding with the proposed Prairie Connector pipeline by mid-2027. The U.S. government reached a settlement with South Bow over the 2022 oil spill in Kansas, with the company agreeing to pay civil penalties and fund prevention and restoration efforts.
In August 2026, Trump hinted at the potential revival of the Keystone XL project as he postponed new tariffs on Canadian goods for three days. Prime Minister Carney did not mention Keystone XL in his statement regarding the tariff postponement.