Trump Hints At Major Oil Pipeline Revival After Breakthrough With Canada

President Donald Trump paused steep 50% tariffs that were set to go in place on Canadian imports, teasing a possible deal over a joint oil pipeline killed by former President Joe Biden. 

The tariffs, announced in July, were set to go into place on Wednesday and hit products like wine, hockey sticks, and cement. Trump posted on Truth Social Tuesday night that the tariffs were being paused while a deal was finalized with Canada that might include reviving the Keystone XL pipeline. 

“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL! The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump said. 

The Keystone XL pipeline was set to move oil from Alberta, Canada, to Nebraska, but the project was rejected by former President Barack Obama. The construction process was then started by Trump in his first term before it hit legal delays, and Biden canceled the project after he took office in 2021. At the beginning of Trump’s second term, he called for the Keystone XL pipeline to be restarted, saying his administration would give “easy approvals” for the project. 

The office of the United States Trade Representative said that the deal would “include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions that will continue to protect our market and American workers, along with our Canadian partners.”

Canadian Prime Minister Mark Carney confirmed that the tariffs were being paused until the end of the day on Friday, saying that “substantial progress has been made, although there is important work still to be done.”

“While we continue this work, Canada remains focused on building a stronger, more independent, and more competitive economy at home,” he added. 

Trump rolled out the new tariffs on July 20, with the White House saying they were necessary to counteract Canada’s  “discriminatory treatment of American products.”

“By doing so, President Trump is offsetting the burden and disadvantage on U.S. commerce from Canada’s discriminatory treatment of U.S. commerce and is leveling the playing field for crucial American exports—cars, alcohol, and dairy,” the White House said.