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Economic Boon or Environmental Bust? Trump’s Climate Gamble

Newsweek · last updated

President Donald Trump’s Environmental Protection Agency has taken a seismic step in U.S. climate policy, formally revoking the 2009 “endangerment finding”—the scientific and legal determination that greenhouse gases threaten public health and welfare.

The decision is expected to face immediate court challenges and could be stayed or reversed. But it risks dismantling the foundation that has underpinned federal limits on carbon emissions from cars, power plants and industry. It has sent shock waves through the scientific community.

Former President Barack Obama warned the rollback would leave Americans “less safe,” arguing it abandons established climate science.

The White House, however, says the move will boost the economy. Officials claim eliminating climate-related regulations will cut costs for manufacturers and consumers, projecting savings of roughly $2,400 per vehicle as emissions standards and related requirements are rolled back. The broader deregulatory push could save more than $1 trillion in total, officials said, lowering energy and transportation costs and boosting U.S. competitiveness.

Trump hailed the step as “the single largest deregulatory action in American history, by far.”

But what could it mean for your pocket…And the planet?

Trump Turns Up Heat on the Start-Stop State

Supporters say the rollback could put more money in Americans’ pockets. By removing federal climate rules, carmakers may face lower costs, which the White House argues could reduce the price of new vehicles.

Scrapping requirements tied to fuel-saving features like start-stop systems could also make cars cheaper to build. EPA Administrator Lee Zeldin also claimed that “everyone hates” the start-stop button.

Looser rules on power plants and oil and gas producers may help keep energy and gasoline prices down. In simple terms, the administration believes cutting regulation will lower costs for businesses—savings it says could be passed on to consumers through cheaper cars, fuel and electricity.

Moreover, rescinding incentives like the start-stop system—designed to improve fuel efficiency—signals a broader shift away from incremental emissions reductions that helped reduce petroleum use. While some consumers complained about the feature, studies show that start-stop systems can yield measurable fuel savings in real-world driving, especially in urban environments.

No regulation of planet-warming pollution

Revoking the endangerment finding is dangerous for one main reason: it strips away the federal government’s authority to regulate planet-warming pollution. Without that legal foundation, there is effectively no nationwide limit on greenhouse gas emissions from cars, power plants, refineries or heavy industry—the largest sources of U.S. carbon output.

Climate change is driven by cumulative emissions. The longer major economies delay reductions, the harder and more expensive it becomes to prevent dangerous levels of warming. Removing federal oversight risks locking in higher emissions for decades, particularly in sectors like energy and transportation. Once new fossil fuel projects are built, they are rarely reversed quickly.

The environmental consequences are real. Rising global temperatures are linked to more intense heatwaves, stronger storms, prolonged droughts and heavier rainfall. These events destroy homes, disrupt food supplies, strain water resources and displace communities.

Scientists warn that surpassing key temperature thresholds could trigger irreversible changes, from ice sheet collapse to ecosystem die-off.

Without regulation of planet-warming pollution, the United States—historically one of the largest emitters—risks accelerating global warming at precisely the moment scientists say emissions must fall sharply to avoid the most catastrophic outcomes.

US Flip-Flopping on Climate: From Obama to Trump to Biden to Trump

U.S. climate policy has swung sharply with each recent change of administration.

Obama built the modern federal framework to curb greenhouse gases, using the EPA’s endangerment finding to regulate emissions from cars and power plants. Donald Trump dismantled much of that structure in his first term, arguing it hurt economic growth. Joe Biden restored and expanded climate rules, rejoining the Paris Agreement and pushing clean energy incentives. Now Trump’s return marks another reversal.

This back-and-forth has created regulatory whiplash, leaving businesses, states and global partners uncertain about America’s long-term commitment to tackling climate change.

Green Economy Sacrificed to China

Rolling back federal climate policy also risks handing the advantage in the fast-growing green economy to China.

While the U.S. loosens emissions rules and slows support for clean technologies, Beijing continues investing heavily in electric vehicles, solar panels, batteries and critical minerals. China already dominates global supply chains in several of these sectors.

Pulling back on climate regulation is likely to reduce domestic demand for clean energy and weaken incentives for innovation, potentially allowing Chinese firms to expand their lead.

The Vulnerable Will Pay the Price

Trump’s climate gamble is betting that deregulation will deliver economic benefits without triggering significant environmental costs. Yet economists and climate scientists argue that unchecked emissions—and the more frequent, severe weather they help drive—impose their own hefty economic tolls. Those costs rarely fall evenly. Low-income communities, coastal residents, farmers and the elderly are often hit first and hardest by floods, heatwaves, storms and rising insurance premiums. Wealthier households can relocate or rebuild; vulnerable families often cannot.

As this policy unfolds, the question will be who, ultimately, pays the price.