Trump Announces Repeal of Climate Endangerment Finding
Watch on YouTube ↗  |  February 12, 2026 at 19:18 UTC  |  1:34  |  Bloomberg Markets
Speakers
Donald Trump — President of the United States

Summary

  • President Trump announces the official termination of the EPA's "Endangerment Finding," a policy underpinning climate regulations since 2009.
  • The administration claims this repeal will eliminate $1.3 trillion in regulatory costs, specifically targeting a reduction in vehicle prices and a resurgence of the American auto industry.
  • The rhetoric signals a hard pivot away from renewable subsidies (specifically wind) and a full-throated endorsement of fossil fuels to drive industrial output ("make factories rock and roll").
Trade Ideas
Ticker Direction Speaker Thesis Time
GM /F
LONG Donald Trump
President of the United States
"Terminating the so-called endangerment finding... damaged the American auto industry... This action will eliminate over $1.3 trillion of regulatory costs and help bring car prices tumbling down." The repeal of the Endangerment Finding effectively kills federal emissions mandates that forced automakers to subsidize EV production with ICE profits. Legacy US automakers (GM, Ford) rely on high-margin trucks and SUVs (ICE vehicles). Deregulation allows them to maximize production of their most profitable units without buying regulatory credits or forcing unprofitable EV volume. LONG legacy US automakers as regulatory overhead vanishes. Retaliatory tariffs from export markets or state-level (California/CARB) legal battles maintaining stricter standards.
XLE /XOM /CVX
LONG Donald Trump
President of the United States
"Fossil fuels have saved millions of lives... [The EPA finding] had no basis in fact... and it had no basis in law." By removing the legal classification of CO2 as a pollutant/threat, the administration removes the legal foundation for restricting drilling, refining, and pipeline construction. This signals a "drill, baby, drill" environment where compliance costs drop and volume increases. LONG traditional energy and integrated oil majors. A massive supply glut could crash oil prices, hurting margins despite lower regulatory costs.
SHORT Donald Trump
President of the United States
"You see it with the blackouts all over where they don't use it, where they went to wind, intermittent wind, which is weak and ineffective and very, very costly." The President is explicitly hostile toward wind energy, labeling it "ineffective." The repeal of the Endangerment Finding provides the legal cover to strip subsidies (ITC/PTC) and prioritize baseload fossil power over renewables. Without federal support, the unit economics of wind projects deteriorate. SHORT wind and broad clean energy ETFs. Private sector demand for renewables (hyperscalers/AI data centers) may sustain growth regardless of federal policy.
CAT /XLI
LONG Donald Trump
President of the United States
"Fossil fuels such as oil... and other things that actually make factories rock and roll." The explicit goal is to lower energy input costs to boost heavy manufacturing. Cheaper diesel and relaxed emissions standards benefit heavy machinery manufacturers and the broader industrial sector. LONG industrials and machinery. Global trade wars or tariffs increasing the cost of raw materials (steel/aluminum).