Canada could see relief from U.S. tariffs on steel and aluminum as interest in a pipeline project resurfaces. Prime Minister Mark Carney discussed the Keystone XL oil pipeline with U.S. President Donald Trump during their recent meeting at the White House. Carney expressed Canada’s renewed interest in the project, which Trump has long supported, potentially paving the way for progress on the tariff issue.
Following the meeting, Canada-U.S. Trade Minister Dominic LeBlanc mentioned that both leaders instructed their teams to focus on “priority files,” including steel, aluminum, and energy deals. Trump has previously advocated for the revival of the Keystone XL pipeline, which faced setbacks during the Obama and Biden administrations.
The recent discussions have reignited hope for the pipeline project, initially proposed in 2008. Material progress was reportedly made on the steel and aluminum tariff issues, which currently carry a 50% duty rate. Canadian officials are optimistic about securing relief for the industry in the near future.
Additionally, the Alberta government’s recent proposal for a pipeline project in British Columbia adds to the ongoing developments in the energy sector. However, the proposed pipeline has faced criticism from B.C. Premier David Eby, who called it “fictional” and costly to taxpayers. Despite challenges, the project continues to garner attention and investment.
The Keystone XL pipeline project, previously managed by TC Energy Corp., has seen its operations transition to South Bow Corp. The company indicated its shift away from the expansion project earlier this year. Despite obstacles and opposition from various groups, including environmentalists and Indigenous communities, the project remains a focal point in the Canadian energy landscape.