U.S. President Donald Trump has asserted that a controversial oil pipeline initiative is being resurrected as negotiations between Canada and the United States continue in an effort to prevent new U.S. tariffs on Canadian goods.
In a post on his Truth Social platform, Trump mentioned that the long-dormant Keystone XL Pipeline, previously terminated by President Joe Biden, might be brought back to life. He shared an AI-generated image depicting him lifting a large pipeline labeled “KEYSTONE” out of a grave, accompanied by two American flags and a headstone inscribed with “Buried by Biden.”
While Canada has not publicly addressed Trump’s assertion regarding the pipeline’s revival within the context of ongoing trade discussions, Washington disclosed on Tuesday a temporary halt on planned 50% tariffs on various Canadian products to facilitate further talks.
The article revisits significant dates in the history of the Keystone XL expansion, tracing back to its initial proposal under the leadership of former Prime Minister Stephen Harper and President George W. Bush. The project faced opposition and underwent rerouting as environmental concerns mounted, eventually leading to its rejection by President Barack Obama.
Subsequent events include legal battles, federal approvals, and construction milestones, culminating in President Biden’s executive order revoking the project’s permit in January 2021. TC Energy terminated the Keystone XL project in June 2021, initiating legal actions to recover damages resulting from the cancellation.
Fast forward to February 2025, during Trump’s second term, where he urged the company behind Keystone XL to expedite the project’s completion. Despite South Bow’s shift away from the Keystone XL project, discussions with customers persist to explore options for enhancing Canadian oil supplies.
In April 2026, Trump signed an order authorizing a proposed project to transport Canadian oil across the border, aiming to revive segments of the Keystone XL pipeline. South Bow partnered with U.S. company Bridger Pipeline for this endeavor. The article also mentions future decisions by South Bow regarding the proposed Prairie Connector pipeline and the settlement reached with the U.S. government for the 2022 oil spill in Kansas.
Trump’s recent statement in August 2026, hinting at the potential revival of the Keystone XL project, coincides with a three-day postponement of new tariffs on Canadian goods. Notably, Prime Minister Mark Carney refrained from mentioning the Keystone XL project in his comments on the deferred tariffs.