The prospect of reviving the long-stalled Keystone XL oil pipeline, a project first proposed more than 15 years ago, has emerged as a key point of discussion for easing U.S. tariffs on Canadian steel and aluminium.

Canadian Prime Minister Mark Carney raised the massive pipeline project during White House talks with U.S. President Donald Trump on Tuesday, raising hope of building the long-proposed pipeline, which would stretch from northern Alberta to the U.S. Midwest, according to a source with direct knowledge of the meeting. 

The source said Carney signaled renewed national interest in the pipeline from the Canadian side, finding a receptive audience in Trump, who has long supported the cross-border project, even calling for its renewal days after his inauguration the second time, despite the developers having walked away. 

The renewed support from Canada for a project Trump has backed appeared to open a path for progress on the 50% U.S. duties currently impacting Canadian steel and aluminum, which are currently the highest-tariffed sector. 

According to the source, Carney and Trump made “material progress” on the tariff issue, with further work expected in the coming days between ministers and officials.

Following the meeting, Canada-U.S. Trade Minister Dominic LeBlanc confirmed that the leaders had instructed their teams to move quickly on “priority files,” specifically naming hopes to land deals on steel, aluminum, and energy. 

LeBlanc, however, did not provide details regarding the "energy" component.

Trump had previously revived the Keystone XL project during his first presidency after the Obama administration blocked it, and he later rescinded an order by President Joe Biden that had again revoked the permit in 2021. Trump posted on social media in February, "We want the Keystone XL Pipeline built."

The new bilateral interest could prompt the private sector to re-examine the venture. This development comes just days after the Alberta government proposed a separate provincial pipeline project as a “test” for Canada, although that idea has already drawn criticism from British Columbia Premier David Eby.

The original Keystone XL proposal would have transported crude oil from Hardisty, Alberta, to Nebraska. However, the original proponent, TC Energy Corp., has since spun off its oil operations to South Bow Corp., which stated in February that it had "moved on" from the expansion project. 

The pipeline faced substantial opposition from environmental and Indigenous groups in the U.S.