Canada may find relief from U.S. steel and aluminum tariffs through a long-standing pipeline project. Prime Minister Mark Carney discussed the Keystone XL oil pipeline with President Donald Trump during their recent meeting at the White House. The Canadian government’s renewed interest in the pipeline, supported by President Trump, could lead to progress on the trade tariffs issue.
Canadian Trade Minister Dominic LeBlanc confirmed that both leaders have prioritized advancing on key issues, including steel, aluminum, and energy deals. Trump’s previous support for the Keystone XL pipeline, despite setbacks under the Obama and Biden administrations, has now resurfaced with potential private sector reconsideration.
Efforts to address the steel and aluminum tariffs, currently at 50%, are ongoing post-meeting. Canadian officials remain hopeful for industry relief and will continue negotiations in the upcoming days. Additionally, a new pipeline proposal from Alberta, which would pass through British Columbia, is under consideration as an alternative.
However, B.C. Premier David Eby has criticized the proposed pipeline, calling it unrealistic and costly. The original Keystone XL pipeline aimed to transport crude oil from Alberta to Nebraska but faced significant opposition before the project was put on hold.
Despite challenges, the Alberta government has invested $1.5 billion to kickstart the project. The project’s future remains uncertain due to environmental and Indigenous group opposition in the U.S. TC Energy Corp., the company behind the original proposal, has since shifted focus away from the expansion project.
The potential revival of the Keystone XL pipeline underscores the ongoing discussions between Canada and the U.S. to address trade issues and foster economic cooperation.
