President Donald Trump announced a three-day pause on 50 percent tariffs for Canadian imports, citing a tentative agreement between the U.S. and Canada. This agreement needs to be finalized. The tariffs were set to start on Wednesday, impacting approximately $20 billion in Canadian goods, according to the Associated Press.
Trump indicated that the agreement might lead to a revival of the Keystone XL Pipeline, which was halted under President Joe Biden in 2021. He mentioned the pipeline “may be awoken from the grave.” Renewing the pipeline project would be another attempt by Trump to revert Biden-era decisions on this controversial pipeline. However, any advancement would likely face regulatory and developmental challenges.
Canadian Prime Minister Mark Carney also used social media to state that progress had been made in negotiations. Yet, he noted that officials still needed to complete the final work. Newsweek reached out to the White House for comments on Tuesday night.
What Is the Keystone XL Pipeline?
The Keystone XL Pipeline is a significant and debated energy infrastructure project in North America. It became central in discussions about climate change, energy security, employment, Indigenous rights, and U.S.-Canada relations.
Originally proposed in 2008 by TransCanada Corporation, now TC Energy, the Keystone XL aimed to expand the current Keystone Pipeline System. This system already carried crude oil from Alberta, Canada, to the United States. The new extension would stretch from Hardisty, Alberta, to Steele City, Nebraska, linking to existing pipelines leading to Gulf Coast refineries.
Supporters believed it would boost North American energy independence and create jobs. Opponents saw it as perpetuating reliance on fossil fuels. The pipeline was planned to transport up to 830,000 barrels of oil daily. However, it raised concerns about potential spills in sensitive areas like Nebraska’s Sandhills region and the Ogallala Aquifer, one of the top U.S. underground freshwater reserves.
Since the pipeline crossed an international boundary, it needed a presidential permit from the U.S. government. This requirement elevated its status from a routine project to a contentious political issue. After extensive reviews, President Barack Obama denied the project in November 2015.
The project gained momentum when Trump assumed office in 2017. Nonetheless, Biden revoked the cross-border permit on his inaugural day in 2021.
Details on the U.S.-Canada Agreement
The United States Trade Representative praised Trump’s announcement on X, stating, “Congratulations Mr. President. The deal will incorporate broad market access for all American products, commitments to economic security, digital trade alignment, and critical measures to protect American markets and workers alongside our Canadian allies.”
This story is ongoing and more details will be provided as they emerge.
Contact for Newsweek editors on this story: Edward T. Cummins.