U.S. President Donald Trump has announced the potential revival of the controversial Keystone XL pipeline project amid ongoing negotiations between Canada and the United States to deter new U.S. tariffs on Canadian products. In a post on his Truth Social platform, Trump suggested that the Keystone XL Pipeline, previously canceled by President Joe Biden, might be resurrected. He shared an AI-generated image depicting him lifting a pipeline labeled “KEYSTONE” from a grave, with American flags in the background and a headstone reading “Buried by Biden.”
While Trump made the claim, Canada has not publicly responded to the assertion that the project is being reconsidered within the context of trade discussions. The U.S. government revealed that it would temporarily halt the imposition of planned 50% tariffs on various Canadian goods for three days to facilitate further talks.
The history of the Keystone XL expansion dates back to its initial proposal in July 2008 during the tenure of Canadian Prime Minister Stephen Harper and outgoing U.S. President George W. Bush. TransCanada, now known as TC Energy, alongside ConocoPhillips, proposed a significant extension to the existing Keystone pipeline, named Keystone XL, to transport oil from Alberta to Texas.
Over the years, the project faced opposition, with protests and legal challenges leading to rerouting requirements. Despite various developments, including approvals and rejections under different administrations, the project encountered setbacks and ultimately faced termination in June 2021.
In February 2025, Trump, now in his second term, expressed support for the Keystone XL project, urging the involved company to proceed with construction. However, the company indicated that it had shifted focus away from Keystone XL but would explore alternative options to meet oil supply demands.
During a meeting in October 2025, Canadian Prime Minister Mark Carney reportedly conveyed Canada’s renewed interest in the Keystone XL pipeline to Trump. Eventually, in April 2026, Trump signed an order authorizing a proposed project for transporting Canadian oil across the border, aiming to revive segments of the Keystone XL pipeline. This initiative involved a partnership between South Bow and Bridger Pipeline.
As of May 2026, South Bow was deliberating on the proposed project, named Prairie Connector, which would potentially transport 550,000 barrels per day from Alberta to Wyoming. The U.S. government announced a settlement with South Bow related to a 2022 oil spill, requiring the company to pay civil penalties and contribute to environmental restoration efforts.
On August 18, 2026, Trump hinted at the possibility of reviving the Keystone XL project while agreeing to postpone new tariffs on Canadian goods for three days. Prime Minister Carney, in response to the tariff postponement, did not address the Keystone XL project in his statement.
