U.S. President Donald Trump wants to revive the Keystone XL pipeline. He plans to bring back the massive oil export project as part of a pending trade deal between Canada and the United States. According to CTV News, Trump suspended his planned 50 percent tariffs on Canadian goods for three days to allow time for negotiations.

The proposed deal includes revitalizing the pipeline project. You will see that this infrastructure project has faced nearly a decade of intense debate.

The Return of Keystone XL

Trump took to Truth Social to announce the tariff suspension. He claimed the great Keystone XL Pipeline will awake from the grave. He even posted an AI generated image of himself pulling the pipeline out of a grave marked by a tombstone reading buried by Biden.

During his first term, Trump tried to push the project forward to fulfill campaign promises. Joe Biden then canceled the pipeline during his first year in office.

Understanding the Pipeline Project

The Keystone XL project serves as an expansion to carry Canadian crude oil to the U.S. Gulf Coast. The completed project increases oil exports to the United States by more than 12 percent.

The original Keystone pipeline runs from Hardisty, Alberta, across Saskatchewan and Manitoba, and down into North Dakota, Illinois, and Nebraska. The XL expansion creates a direct route between Hardisty and Steele City, Nebraska. Builders have only constructed the U.S. portions of this extension so far.

A History of Controversy

TC Energy Corporation and ConocoPhilips first proposed the project in 2008. The Canadian Energy Board approved it in 2010 with 22 conditions regarding safety and environmental protection. Barack Obama shut the project down in 2012. Trump approved it in 2017. Biden canceled it again in 2021.

Biden stated the project failed to align with his economic and environmental goals. Canadian officials expressed disappointment at the time and promised to press the administration for a reconsideration.

Leverage in Trade Talks

You can see how the pipeline now serves as a major bargaining chip. In October, Mark Carney pitched the project to Trump in exchange for relief from steel and aluminum tariffs. Reports indicate Trump was very receptive to the idea.

Alberta Liberal MP Corey Hogan confirmed negotiators use the pipeline as leverage in current trade talks. Hogan noted that Canada needs strong assets to negotiate with when protecting exposed industries from tariffs.

CTV News political analyst Eric Ham pointed out that Trump prioritizes oil and energy in his administration. Ham stated Trump views energy dominance as a key component in negotiations with Canada.

Economic Benefits

Former Canadian energy executive Dennis McConaghy believes both countries stand to gain from the project. McConaghy explained that Canadian heavy oil perfectly suits U.S. refineries.

He noted Canada gains a significant economic advantage by securing a reliable export route, especially since building pipelines to the West Coast carries obvious risks.

Frequently Asked Questions

What is the Keystone XL pipeline?

The Keystone XL pipeline is a proposed expansion project designed to transport Canadian crude oil directly from Alberta to Nebraska. It aims to increase oil exports to the U.S. Gulf Coast.

Why did Joe Biden cancel the project?

President Joe Biden canceled the project in 2021 because he determined it did not align with his administration goals for the economy and the environment.

How does the pipeline relate to current tariffs?

Donald Trump suspended a planned 50 percent tariff on Canadian goods to negotiate a new trade deal. Canadian officials use the pipeline as leverage to secure relief from these tariffs.