Canada may find relief from U.S. tariffs on steel and aluminum through revived interest in a long-standing pipeline project. Prime Minister Mark Carney brought up the Keystone XL oil pipeline, initially proposed over 15 years ago, in discussions with U.S. President Donald Trump at the White House. Sources reveal that Carney highlighted Canada’s renewed enthusiasm for the pipeline, and Trump showed a positive attitude towards advancing the project.
The Canadian government’s renewed interest in a pipeline supported by Trump has created potential for progress on steel and aluminum tariffs. Discussions focused on “priority files,” with an emphasis on steel, aluminum, and energy deals. Trump has been vocal about his support for the Keystone XL pipeline, which faced setbacks during the Obama and Biden administrations. Recent developments suggest a push to reexamine the project, potentially facilitated by new support from Canadian and U.S. authorities.
Meetings between Carney and Trump showed substantial strides in addressing steel and aluminum concerns, particularly considering the high tariffs imposed on these sectors. Efforts to secure relief for the industry will continue through collaborative efforts between officials from both countries.
In parallel, the Alberta government’s proposal for a pipeline project through British Columbia has stirred controversy. B.C. Premier David Eby criticized the idea, labeling it as unrealistic and costly for taxpayers. The Keystone XL project, initially designed to transport crude oil from Alberta to Nebraska, faced challenges in the U.S., including opposition from environmental and Indigenous groups.
Despite obstacles, the Alberta government has invested $1.5 billion in equity towards the project. The original proponent, TC Energy Corp., has shifted its focus away from the expansion project to its new entity, South Bow Corp. While the project’s future remains uncertain, recent developments indicate a potential resurgence of interest in the Keystone XL pipeline.
