U.S. President Donald Trump asserts that a controversial oil pipeline endeavor is being resurrected amidst ongoing negotiations between Canada and the United States to deter potential new tariffs on Canadian products. Trump took to his Truth Social platform late on Tuesday to declare that the Keystone XL Pipeline, previously terminated by President Joe Biden, might be revived. He also shared a computer-generated image portraying him lifting a significant pipeline labeled “KEYSTONE” from a grave, accompanied by two American flags and a headstone reading “Buried by Biden.”
While Washington announced a temporary halt to planned 50% tariffs on various Canadian items for three days to facilitate further discussions, Canada has not issued any public response regarding Trump’s assertion of the project’s revival within the context of trade talks. The history of the Keystone XL expansion project includes significant milestones dating back to its initial proposal in July 2008 during the tenure of former Canadian Prime Minister Stephen Harper and outgoing U.S. President George W. Bush. The project faced opposition and hurdles over the years, culminating in its termination in June 2021.
In a recent development, Trump has authorized a proposed initiative to transport Canadian oil across the border as part of efforts to revive certain aspects of the Keystone XL project. South Bow, the Canadian entity behind Keystone XL, is collaborating with Bridger Pipeline, a U.S. firm, on this new proposal. Amidst these events, Trump has hinted at the potential reactivation of the Keystone XL project, coinciding with the postponement of impending tariffs on Canadian goods. Prime Minister Mark Carney is reported to have conveyed renewed Canadian interest in the project during a meeting with Trump at the White House in October 2025.
South Bow, the company previously associated with the Keystone XL project, has indicated that a decision on proceeding with the proposed Prairie Connector pipeline project will be made by mid-2027. This initiative, envisaging a pipeline transporting 550,000 barrels per day from Alberta to Wyoming, is distinct from the canceled 2021 project route in the U.S. but may utilize sections of the existing Keystone XL pipeline on the Canadian side of the border.
Moreover, in July 2026, the U.S. government announced a settlement with South Bow concerning the 2022 oil spill in Kansas, with the company agreeing to pay significant civil penalties and fund preventive measures and restoration projects. Trump’s recent actions and statements related to the Keystone XL project indicate a potential resurgence of the initiative, aligning with the evolving dynamics between Canada and the U.S. in the realm of trade negotiations.
