Carney Pitches Trump on Energy Alliance, Keystone XL Project
Prime Minister Links Pipeline to Effort to Reach Deal on Lowering 50% US Tariffs on Canadian Steel and Aluminum Products
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Canadian Prime Minister Mark Carney pitched deeper cooperation with the U.S. on energy, including a possible revival of the Keystone XL pipeline project, in his meeting with President Donald Trump on Oct. 7.
Carney brought up the oil pipeline project in an effort to reach a deal on lowering the 50% U.S. tariffs on Canadian steel and aluminum products, according to a government official with knowledge of the matter.
Trump and Carney, flanked by their cabinet ministers, met at the White House for more than two hours Oct. 7. The Canadian Broadcasting Corp. first reported that Carney raised Keystone XL during the visit.
The Canadian side pointed to other areas of potential energy cooperation, including around electricity exports and uranium production for nuclear power, the official said. The person added that Trump appeared receptive to the idea of linking this issue to making progress on metals tariffs.
Still, a timeline for reaching a deal remains vague. An Oct. 8 statement from Carney’s office said the two sides have “directed their teams to conclude this work in the coming weeks.”
The White House did not immediately respond to a request for comment. Trump has brought up the Keystone XL project before, posting on social media in February that he wants to see it built “NOW!”
The 1,200-mile pipeline proposal, which would have carried Canadian oil sands crude to Nebraska, was originally rejected by former President Barack Obama in 2015, and then again by former President Joe Biden in 2021.
Since then, parts of the system — which runs through Alberta, Montana, South Dakota and Nebraska — have been dismantled, and many permits along the route have expired.
South Bow Corp., the oil pipeline business spun off from TC Energy Corp., said earlier this year that it has “moved on” from attempting to build Keystone XL. But on Oct. 8, the company was more ambiguous.
“We are not privy to the ongoing discussions between the Canadian and U.S. governments,” said an emailed statement from spokesperson Solomiya Lyaskovska. “South Bow is supportive of efforts to find solutions that increase the transportation of Canadian crude oil. We will continue to explore opportunities that leverage our existing corridor with our customers and others in the industry.”
Whether the scenario would yield a deal is unclear. Trump said Oct. 7 that he’s seeking a “comprehensive” deal and has routinely made maximalist demands in trade talks with other countries, seeking a wide range of pledges in exchange for even modest tariff relief.
Canada’s opposition Conservative Leader Pierre Poilievre said his party would back Carney if he “does the right thing and gets this crucial project moving.”
Carney has been pushing to fast-track major projects that would spur growth as Trump’s tariffs batter the economy. But he has often stressed the need to diversify Canada’s trading partners and reduce its overreliance on the U.S. as an export market.
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