U.S. President Donald Trump has stated that the controversial Keystone XL pipeline project is potentially being revived amid ongoing trade discussions between Canada and the United States to prevent the imposition of new U.S. tariffs on Canadian products.
In a post on his Truth Social platform, Trump mentioned that the Keystone XL Pipeline, previously halted by President Joe Biden, could be resurrected. He shared an AI-generated image depicting him lifting a large pipeline labeled “KEYSTONE” out of a grave, accompanied by American flags and a headstone reading “Buried by Biden.”
While Canada has not publicly responded to Trump’s assertion regarding the project’s revival within trade negotiations, Washington announced a temporary halt on planned 50% tariffs on various Canadian goods for three days to facilitate further talks.
The Keystone XL expansion has a history dating back to its initial proposal in July 2008, during the tenure of Prime Minister Stephen Harper and outgoing U.S. President George W. Bush. The project faced opposition and legal challenges over the years, leading to its eventual termination in June 2021.
In February 2025, Trump, now serving his second term, urged the company behind Keystone XL to proceed with the project swiftly. Despite the project’s termination, discussions between Canada and the U.S. have reignited national interest in the pipeline, as reported in October 2025.
On April 30, 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, in collaboration with Bridger Pipeline, is involved in this initiative.
South Bow announced in May 2026 that a decision on the proposed Prairie Connector pipeline, with a capacity of 550,000 barrels per day from Alberta to Wyoming, is expected by mid-2027. This project would utilize some components of the existing Keystone XL pipeline on the Canadian side.
Furthermore, in July 2026, South Bow reached a settlement with the U.S. government regarding the 2022 oil spill in Kansas, agreeing to pay civil penalties and fund environmental restoration efforts.
In August 2026, Trump hinted at the possibility of reviving the Keystone XL project, coinciding with the postponement of new tariffs on Canadian goods for three days. Prime Minister Mark Carney did not mention Keystone XL in his statement about the tariff delay.