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Keystone XL revival floated as Canada tariff truce nears end
The 50% tariff threat against Canada was paused for three days, but a final deal is still unresolved, with a key deadline Friday.
OilPrice reports that Canada received a three-day reprieve from President Donald Trump’s threatened 50% tariffs, but the broader trade agreement remains stalled, with Washington and Ottawa working through a Friday deadline on one of their biggest disputes.
Reuters is cited in the report saying Trump added energy to the negotiations late Tuesday, telling the public that the 830,000-bpd Keystone XL oil pipeline may be revived as part of a potential deal.
The largest remaining sticking point is over Canadian auto exports, after the United States proposed reducing its 25% tariff on Canadian-made vehicles to 15%, potentially down to 7.5% for cars with enough U.S. content, while Ottawa argues the tariff calculation should also credit Canadian and Mexican parts.
The outcome could affect Canada’s auto industry competitiveness in its biggest export market, since the auto dispute has also become leverage over the rest of the agreement, including whether Ottawa unwinds retaliatory actions from the prior trade war, the report said.