Trump’s return to the presidency has brought a reversal of U.S. climate and environmental policy. Since January, the administration has launched an aggressive deregulatory campaign, sacrificing the protections strengthened during the Biden era in favor of fossil fuel development.
One of the most discussed moves has been the Environmental Protection Agency’s (EPA) decision to revisit the 2009 “endangerment finding”. The agency legally recognized the toxicity to public health of greenhouse gases. The ruling was at the foundation of virtually all U.S. climate regulations. Its dismantling might eliminate the legal underpinning for federal efforts to reduce carbon emissions.
In mid-March, Lee Zeldin, EPA’s administrator, announced a package of 31 deregulatory actions. Among these actions, the most notable are the easing of carbon emission limits for power plants, narrowing the Clean Water Act’s implementation, and rolling back standards limiting air pollution and toxic water disposal.
Another area of rollback involves vehicle emissions and EVs. The administration has halted funding for the National Electric Vehicle Infrastructure (NEVI) program, freezing $3 bn destined for the expansion of EV charging stations. Furthermore, the EPA weakened vehicle emissions standards.
Beyond emissions regulations, the POTUS signed an executive order expanding logging operations across 280 acres of national parks and federal lands. The order incentivizes federal agencies to bypass environmental protections in order to boost timber production.
The National Oceanic and Atmosphere Administration (NOAA) has faced significant staff cuts, with 600 employees being laid off in February and more expected in the coming months. The NOOA is responsible for America’s climate and weather monitoring system. These cuts pose concerns regarding the country’s ability to respond to increasingly frequent and severe weather events.
In January, President Trump signed an executive order calling for an assessment of FEMA’s (Federal Emergency Management Agency) effectiveness. Trump has also hinted at eliminating the agency altogether. This move could severely hinder the country’s ability to recover from the increasingly frequent natural disasters.
In Foreign affairs, the Trump administration has, again, decided to withdraw the country from the Paris Agreement. It also exited crucial multilateral climate finance initiatives such as the International Partners Group and the Loss and Damage Fund, undermining global climate solidarity.
Ultimately, the administration launched the National Energy Dominance Council in February, signalling a renewed commitment to fossil fuel production, increasing production even further while reducing regulations.
Impact of Tariffs on Sustainability
As part of the so-called “Liberation Day” in March this year, Trump imposed radical tariffs on a majority of US trading partners, including China, Mexico, Canada, and the European Union. Apart from the tremendous disruption of the economy in general, the tariffs will have a massive impact on sustainability, both in and outside the US.
1. Impact on the US
The tariffs will, above all, hit clean energy projects by disrupting their global supply chains, increasing costs and creating delays. A significant percentage of critical green technologies have components imported from one of the nations hit by the tariffs, such as China and other Southeast Asian countries. Many of these components are also used in the production of electric vehicles (EVs), and therefore, the disruption of their supply chain weakens the competitiveness of US EVs. As the prices of EVs, solar panels, and energy-efficient appliances rise due to tariffs, lower-income households are priced out of the clean energy transition. This not only delays national sustainability goals but also reinforces existing environmental injustices.
The rapid and unpredictable changes in tariff policies create an environment where businesses – but also consumers – face constant uncertainty. This uncertainty results in a reduction in innovation and investments, which leads to fewer advancements in crucial sustainable technologies. Companies may postpone or cancel long-term projects and cut back on environmental R&D or shift to lower-cost, less-sustainable options. By increasing barriers to sustainable innovation, the US risks falling behind in the global green economy. Therefore, countries that continue to invest in and scale sustainable technologies could dominate future markets, creating a lasting competitive disadvantage for American-based companies.
2. Impact on the World
The tariffs will not only have an impact on the US but also have consequences for the rest of the world. First of all, the tariffs will strain international relationships, which are critical for coordinated climate action. Therefore, it will be harder to negotiate agreements like the Paris Accord, accompanied by a heightened geopolitical conflict risk. Furthermore, the diplomatic strain caused by tariffs could lead to retaliation in the form of counter-tariffs on US-made clean tech products, like wind turbines or EV components, making American innovations less attractive globally. This tit-for-tat dynamic undermines cooperative international climate strategies.
Secondly, tariffs risk widening the gap between the Global North and South by driving up the cost of sustainable technologies. Nations already struggling with climate vulnerability may be forced to rely longer on cheaper, dirtier energy sources like coal or diesel. This hinders their development while amplifying global emissions and climate inequality.
Overall, the disruption of the economy and the uncertainty in financial markets will shift the attention away from sustainability-related issues towards more immediate concerns, such as supporting companies hit by tariffs, adjusting monetary policies and implementing countermeasures.
Written by Lena Marmsoler and Riccardo Pinna
References
1. https://www.theguardian.com/environment/2025/mar/12/epa-trump-climate-rules
2. https://time.com/7258269/trump-climate-policies-executive-orders/
3. https://edition.cnn.com/2025/03/12/climate/trump-ev-power-plant-rollbacks/index.html
4. https://www.bsr.org/en/blog/navigating-uncertainty-us-tariffs-sustainable-business
5. https://sustainabilitymag.com/articles/how-will-us-tariffs-impact-corporate-sustainability
