While there has already been a backlash from environmental groups, the Trump administration says removing the endangerment finding will be economically beneficial – particularly when it comes to the cost of vehicles.
Reversing the finding will reduce automobile manufacturers’ costs by around $2,400 (£1,760) per car, the White House claimed.
Since 2009, the endangerment finding has opened the door to government policies that have boosted fuel efficiency and the number of electric cars on the road. A key policy of Trump’s predecessor Joe Biden was the Inflation Reduction Act, which incentivised electric vehicle ownership and renewable energy projects.
Since returning to the White House, a number of these policies have already been scrapped by Trump.
Thursday’s change has been welcomed by some in the motor industry.
Manufacturer Ford told CNBC it would help to address “the imbalance between current emissions standards and customer choice”, while industry body the Alliance for Automotive Innovation said it would help to “correct some of the unachievable emissions regulations enacted under the previous administration”.
However, with climate targets still applicable in many international markets, there are doubts about how much car manufacturers will change production.
“This rollback is sort of cementing things that have already been done, such as the relaxation of the fuel economy standards,” said Michael Gerrard, a climate law expert from Columbia University.
“But it really does put the US automakers in a bind, because nobody else is going to want to buy American cars.”