U.S. President Donald Trump has suggested that the Keystone XL pipeline project, previously abandoned by past administrations, might be resurrected as part of a new trade agreement between the U.S. and Canada. However, industry experts believe that this statement may be driven more by political motives than actual energy considerations.

In a recent social media post just before imposing new tariffs on Canadian imports, Trump announced a temporary halt on tariffs and a potential deal with Canada. He specifically mentioned the Keystone XL Pipeline, which was halted by the Biden administration, hinting at its revival.

Former TransCanada Corporation executive Dennis McConaghy noted that Trump’s mention of the Keystone XL project could impact Prime Minister Mark Carney’s decision-making in the coming days amid ongoing trade negotiations. Since initiating tariffs on Canadian goods in 2025, Trump has consistently emphasized that the U.S. can do without Canadian imports, excluding certain commodities like oil and minerals from tariffs.

While some view Trump’s remark on Keystone XL positively, others like Carlo Dade from the University of Calgary caution against premature excitement, citing potential political and environmental challenges. Valérie Beaudoin of the Advisory Committee on Canada-U.S. Economic Relations believes that approving the pipeline may pose difficulties for Trump, especially with future political uncertainties.

South Bow Corp., which operates the Keystone Pipeline System, remains silent on Trump’s remarks. The proposed Prairie Connector project, linked to Keystone XL, could boost Canada’s oil exports to the U.S. if completed. However, a final decision on the project is pending.

Despite the potential benefits, industry experts like McConaghy and South Bow CEO Bevin Wirzba stress the need for caution and thorough evaluation before proceeding with the Keystone XL revival. The project’s fate may be influenced by changing political landscapes and market conditions, making its future uncertain.

Overall, while Trump’s comments on reviving the Keystone XL pipeline have sparked discussions and speculation, the actual feasibility and implications of such a revival remain uncertain in the current economic and political climate.