U.S. President Donald Trump has suggested that the Canada-U.S. Keystone XL pipeline project, previously terminated by past administrations, could potentially be revived under a new trade agreement between the two countries. However, industry experts, including a former executive involved with the project, view this statement as more of a political maneuver rather than a straightforward energy initiative.
In a recent social media post just before the initiation of new tariffs on Canadian goods, Trump announced a temporary pause on tariffs and mentioned a potential revival of the Keystone XL Pipeline that was halted during Joe Biden’s term. Prime Minister Mark Carney did not directly address Trump’s post in his response.
Dennis McConaghy, a former executive at TransCanada Corporation, noted that Trump’s signal regarding Keystone XL could impact the ongoing trade negotiations between the U.S. and Canada. Since imposing tariffs on Canadian goods in 2025, Trump has maintained a stance that the U.S. can function independently from Canada economically.
While some experts view the mention of Keystone XL positively in this context, others, like Carlo Dade from the University of Calgary, caution that reviving the project would face challenges given the current political and environmental landscape. Valérie Beaudoin, from the federal government’s Advisory Committee on Canada-U.S. Economic Relations, suggests that the decision to move forward with Keystone XL would be easier for Canada than the U.S.
South Bow Corp., the operator of the Keystone Pipeline System, which delivers crude oil from Canada to U.S. markets, has not commented on the potential revival of Keystone XL. The history of the project includes its proposal in 2008, subsequent opposition, and Trump’s efforts to revive sections of it since taking office in 2025.
The Prairie Connector project, a collaboration between South Bow and Bridger Pipeline, aims to utilize parts of the Keystone XL pipeline for increasing Canadian crude oil exports to the U.S. Despite the potential benefits of this project, South Bow has not made a final decision on its implementation.
Overall, the discussions surrounding the revival of the Keystone XL pipeline reflect a complex interplay of politics, economics, and environmental considerations in the context of Canada-U.S. relations.