U.S. President Donald Trump has announced the potential revival of a controversial oil pipeline project during trade negotiations between Canada and the United States to avoid new U.S. tariffs on Canadian products. Trump shared on his social media platform that the Keystone XL Pipeline, previously canceled by President Biden, could be brought back to life. A digital image posted by Trump depicted him lifting a pipeline labeled “KEYSTONE” from a grave, with “Buried by Biden” written on a headstone in the background.
While the Canadian government has not publicly addressed Trump’s claim, Washington disclosed a temporary halt on planned 50 per cent tariffs on various Canadian goods for three days to facilitate further discussions. The history of the Keystone XL expansion project dates back to its initial proposal in July 2008, during the administrations of Prime Minister Stephen Harper and U.S. President George W. Bush.
Opposition to the project grew over the years, culminating in President Obama rejecting the pipeline’s route in November 2011. Subsequent developments included legal challenges and legislative actions, leading to various approvals and rejections under different administrations. The project faced suspensions, name changes, and ongoing disputes, ultimately resulting in its termination in June 2021.
In a recent turn of events, Trump, now serving his second term, has expressed support for the Keystone XL project’s revival, urging swift action. Prime Minister Mark Carney reportedly discussed renewed Canadian interest in the pipeline during a meeting with Trump in October 2025. Trump later signed an order in April 2026 authorizing a proposed oil transportation project in collaboration with a U.S. company, signaling a partial resurrection of the Keystone XL initiative.
As the Keystone XL saga continues, South Bow, the Canadian entity behind the project, is exploring options to meet oil supply demands while engaging with stakeholders. Recent settlements over environmental issues related to the project highlight the ongoing complexities surrounding the pipeline’s future. Trump’s recent statements hint at potential developments in the project’s revival efforts amid trade negotiations between the two countries.