U.S. President Donald Trump postponed the implementation of 50% tariffs on a range of Canadian goods by three days to allow negotiators to finalize a deal on the Keystone XL oil pipeline project.
The tariffs, initially scheduled to take effect on Wednesday, would have applied to Canadian wine, hockey equipment, furniture, dairy products and other goods. The suspension provides time for U.S. and Canadian officials to conclude negotiations on the cross-border pipeline, Trump announced on Truth Social.
Canadian Prime Minister Mark Carney stated Monday that his government was prepared for any outcome and would negotiate from a position of strength. The Keystone XL project, a 1,900-kilometer extension of the existing Keystone Pipeline, would transport oil sands crude from Alberta to the Gulf of Mexico coast.
The pipeline, which was proposed in the 2000s, faced prolonged opposition from environmental groups. Opposition efforts succeeded in 2021, when operators and the Alberta government canceled the XL expansion. Trump, a Republican, has long advocated for reviving the project despite environmental concerns.
The existing Keystone Pipeline, operational since 2010, connects Alberta to U.S. Midwest refineries. The proposed XL extension would have doubled the system’s capacity to 1.3 million barrels per day, according to prior industry estimates.
