U.S. President Donald Trump has suggested that the Keystone XL pipeline project, which was previously scrapped by past administrations, could be revived under a new trade agreement with Canada. However, some industry insiders believe that Trump’s statement may have more to do with political motives rather than economic considerations.
In a recent social media post, Trump announced a temporary halt on new tariffs on Canadian goods and mentioned a potential revival of the Keystone XL Pipeline, which was cancelled by his predecessor, Joe Biden. Prime Minister Mark Carney did not directly address Trump’s comments in response.
Dennis McConaghy, a former executive at TransCanada Corporation, viewed Trump’s signal on Keystone XL as a strategic move amid ongoing trade negotiations. Since imposing tariffs on Canadian goods in 2025, Trump has consistently downplayed the significance of Canada’s exports to the U.S., despite certain exemptions for products like oil and minerals.
While some experts see Trump’s mention of Keystone XL as a positive development, others, like Carlo Dade from the University of Calgary, caution that reviving the project could face challenges due to political and environmental concerns. Valérie Beaudoin, part of the federal Advisory Committee on Canada-U.S. Economic Relations, noted that approving Keystone XL might be easier for Carney than for Trump, given the potential uncertainties surrounding future administrations.
The Keystone Pipeline System, operated by South Bow Corp., plays a crucial role in supplying Canadian and U.S. crude oil to American refining markets. Despite Trump’s interest in reviving Keystone XL, there are lingering doubts about the project’s feasibility and alignment with current market dynamics.
South Bow, the company behind Keystone XL, is exploring the Prairie Connector project in collaboration with Bridger Pipeline, aiming to leverage existing pipeline infrastructure for increased crude oil exports to the U.S. The project, if realized, could bring significant value to Canada’s energy sector, according to industry experts.
While Trump’s remarks have sparked discussions about the potential resurrection of Keystone XL, uncertainties remain about the project’s future and its alignment with broader energy market trends.