President Donald Trump says the long-dead Keystone XL pipeline could be headed for an unexpected revival as the United States and Canada work to finalize a new trade agreement.
Trump announced Tuesday night that he was temporarily suspending a 50 percent tariff on Canadian goods that had been scheduled to take effect Wednesday morning. The pause will last three days while officials finish work on the agreement.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump wrote on Truth Social.
Then he raised the possibility of bringing back one of the most politically contentious energy projects of the past two decades.
“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump wrote.
Trump drove the point home with another post featuring an AI-generated image depicting him digging the pipeline out of a grave marked “Buried by Biden.”
President Trump just resurrected the keystone XL pipeline from the dead that Biden cancelled 🔥🔥🔥 pic.twitter.com/9pzdJMY2Eg
— BLT (@BLT21_) August 19, 2026
Keystone XL has passed through several presidential administrations, with its fortunes changing repeatedly depending on who occupied the White House.
The original proposal dates to 2008. The pipeline was designed to carry crude oil from Hardisty, Alberta, south to Steele City, Nebraska. From there, the oil could enter existing pipeline networks leading to refineries on the Gulf Coast.
The project encountered years of political and environmental opposition before President Barack Obama rejected it in 2015.
Trump reversed course after entering office, approving the project in 2017.
Four years later, President Joe Biden revoked its presidential permit shortly after taking office, effectively ending the project. TC Energy, the company behind Keystone XL, subsequently terminated it.
But Trump’s return to the White House has again changed the federal government’s approach to cross-border oil infrastructure.
Brilliant move by President Trump. Announces a deal in place reviving the Keystine pipeline, while blaming Biden for its previous demise. Now Carney has to move ahead on it or it will look like he blew the deal. 4D chess by Trump. pic.twitter.com/XkCL6PAPkZ
— Stu St. Audré PsyD (@FreelandsQueef) August 19, 2026
On April 30, Trump signed a presidential permit authorizing Bridger Pipeline Expansion LLC to construct and operate pipeline facilities across the U.S.-Canadian border in Phillips County, Montana.
“Slightly different than the last administration,” Trump said while signing the order, according to Reuters. “They wouldn’t sign a pipeline deal, and we have pipelines going up.”
That project is not simply a resurrection of Keystone XL under its original blueprint.
On the Canadian side, it would make use of infrastructure constructed for the abandoned Keystone XL project that has remained idle. Once the pipeline enters the United States, however, it would follow a different path.
“The Canadian portion of the project revives the part of the Keystone XL that was previously built and has been sitting idle,” Just the News reported. “On the American side, the pipeline would take a different route than the Keystone XL, running 645 miles through Montana to Guernsey, Wyoming.”
Trump’s Tuesday statement raises the possibility that energy infrastructure could become part of the broader negotiations with Canada, although neither side has yet released final documents showing precisely what role a Keystone XL revival would play.
🇺🇸🇨🇦 The revived Keystone system and Bridger Pipeline Expansion create a major new corridor for Canadian crude into the U.S. network and existing U.S. ports.
South Bow’s Prairie Connector uses ~150 km of idle Keystone XL pipe from Hardisty, Alberta, to the Montana border. It has… https://t.co/EskLdKjbmb pic.twitter.com/HNP79gSnoE
— John Nelson (@WIgeopolitical) August 19, 2026
That distinction matters because the trade agreement itself is apparently not finished.
Canadian Prime Minister Mark Carney acknowledged progress while making clear that negotiations are continuing.
“Substantial progress has been made, although there is important work still to be done,” Carney said, according to NBC News.
The Office of the U.S. Trade Representative offered additional details about the developing agreement.
“The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions that will continue to protect our market and American workers, along with our Canadian partners,” the office said.
For now, Trump has given negotiators three more days by suspending the threatened tariffs.
