U.S. President Donald Trump has announced the potential revival of the controversial Keystone XL oil 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 mentioned the possibility of bringing back the Keystone XL Pipeline, which was previously halted by President Joe Biden. Additionally, Trump shared an AI-generated image depicting him lifting a large pipeline labeled “KEYSTONE” from a grave, with American flags in the background and a headstone reading “Buried by Biden.”
While Canada has not publicly addressed Trump’s statement regarding the project’s revival, Washington announced a temporary halt to planned 50% tariffs on various Canadian goods for three days to facilitate further discussions.
The history of the Keystone XL extension dates back to its initial proposal in July 2008 during the administrations of Canadian Prime Minister Stephen Harper and U.S. President George W. Bush. The project faced opposition over the years, with significant protests and legal challenges leading to its eventual cancellation in 2021 by President Biden.
In February 2025, Trump, now serving a second term, expressed support for the Keystone XL project, urging the company behind it to proceed swiftly. Despite initial setbacks, discussions in October 2025 between Prime Minister Mark Carney and Trump hinted at renewed Canadian interest in the pipeline.
Most recently, in April 2026, Trump signed an order authorizing a proposed project to transport Canadian oil across the border, aiming to revive parts of the Keystone XL initiative. The new project, named Prairie Connector, would not follow the previous route but would utilize some existing Keystone XL pipeline segments on the Canadian side.
As of May 2026, South Bow, the company involved, is considering the project’s future, with a decision expected by mid-2027. The U.S. government announced a settlement with South Bow over a 2022 oil spill, with the company agreeing to pay penalties and support restoration efforts.
Trump’s recent decision to delay new tariffs on Canadian goods by three days aligns with his mention of the potential resuscitation of the Keystone XL project, signaling a new chapter in the ongoing saga of the pipeline’s development.
