Canada is hopeful for relief from U.S. tariffs on steel and aluminum, with a potential boost from renewed interest in the Keystone XL oil pipeline. Prime Minister Mark Carney discussed the pipeline project with U.S. President Donald Trump, signaling a positive response from the President. This development has reignited Canadian enthusiasm for the pipeline, which Trump has long championed, creating an opportunity for progress on the tariff issue.
During a press conference following the meeting, Canada-U.S. Trade Minister Dominic LeBlanc mentioned a focus on “priority files,” including steel, aluminum, and energy deals, without elaborating on the energy aspect. Trump’s support for the Keystone XL project, which faced setbacks under the Obama and Biden administrations, has been evident. The recent collaboration between the Canadian government and the U.S. administration could prompt private sector interest in the project, initially proposed in 2008.
Progress was made on addressing steel and aluminum tariffs, currently subject to a hefty 50% duty, in discussions between Carney and Trump. The hope for industry relief continues with ongoing efforts by officials on both sides of the border. In a related move, the Alberta government proposed a pipeline project, which Premier Danielle Smith views as a national test.
However, B.C. Premier David Eby has criticized the proposed pipeline, questioning its feasibility and potential costs to taxpayers. The previous Keystone XL plan aimed to transport crude oil from Alberta to Nebraska, with substantial investments already made by the Alberta government. The project faced opposition in the U.S., leading to its reevaluation by TC Energy Corp., now operating under South Bow Corp, signaling a shift in focus away from the expansion project.