U.S. President Donald Trump has announced a potential revival of the controversial Keystone XL pipeline project amid trade negotiations between Canada and the United States to prevent new U.S. tariffs on Canadian products. Trump shared on his Truth Social platform that there is a chance the Keystone XL Pipeline, previously halted by President Joe Biden, could be resurrected. An AI-generated image posted by Trump depicted him lifting a massive pipeline labeled “KEYSTONE” from a grave with American flags in the background and a headstone reading “Buried by Biden.”
While Canada has not officially responded to Trump’s statement regarding the project’s revival, Washington declared a temporary pause on planned 50% tariffs on various Canadian goods for three days to facilitate further discussions.
The history of the Keystone XL expansion project dates back to its initial proposal in July 2008 during the tenure of former Prime Minister Stephen Harper and outgoing U.S. President George W. Bush. TransCanada, now known as TC Energy, along with ConocoPhillips, initially proposed the extension of the Keystone pipeline, named Keystone XL, to transport oilsands bitumen from Alberta to Texas.
Numerous developments and opposition emerged over the years, including environmental concerns and protests, leading to rerouting requests and legal battles. Despite various approvals and rejections under different administrations, the project faced setbacks, ultimately resulting in its termination in June 2021 by TC Energy.
In recent months, discussions about the project resurfaced, with Trump endorsing its revival in February 2025. This was followed by Prime Minister Mark Carney expressing renewed Canadian interest in the pipeline during discussions with Trump in October 2025.
Trump reaffirmed his support for the Keystone XL project in April 2026 by authorizing a proposed project in collaboration with South Bow and Bridger Pipeline to transport Canadian oil across the border. The proposed Prairie Connector pipeline, with a daily capacity of 550,000 barrels, aims to utilize existing Keystone XL infrastructure on the Canadian side.
Further developments in July 2026 saw South Bow reaching a settlement with the U.S. government over the 2022 oil spill in Kansas, agreeing to significant financial penalties and restoration efforts. Trump’s recent decision to postpone new tariffs on Canadian goods by three days also coincided with his statement hinting at the potential revival of the Keystone XL project. Carney, in response to the tariff postponement, did not address the Keystone XL project in his statement.
