"I promised I would exit or renegotiate any deal which fails to serve America's interests," the president declared in an address in the White House Rose Garden watched anxiously by leaders around the world.
"I was elected to represent the citizens of Pittsburgh, not Paris," he said.
"As of today, the United States will cease all implementation of the non-binding Paris accord and the draconian financial and economic burdens the agreement imposes on our country," Trump said.
The US president complained that the accord signed under his predecessor President Barack Obama gives other countries an unfair advantage over US industry and destroys American jobs.
"I cannot, in good conscience, support a deal that punishes the United States - the world's leader in environmental protection - while imposing no meaningful obligations on the world's leading polluters," Trump said, before singling out China and India.
"This agreement is less about the climate and more about other countries gaining a financial advantage over the United States," he claimed.
"So we're getting out but we'll start to negotiate and we will see if we can make a deal that's fair. And if we can, that's great. And if we can't, that's fine," he said.
Trump's decision sparked an instant wave of indignation both at home and abroad, with Obama saying the move meant the US was "joining a handful of nations that reject the future."
Germany said the US was "harming" the entire planet, and European Commission President Jean-Claude Juncker called the decision "seriously wrong."
And after his city was cited, Pittsburgh Mayor Bill Peduto laid into Trump, tweeting: "As the Mayor of Pittsburgh, I can assure you that we will follow the guidelines of the Paris Agreement for our people, our economy & future."
"Fact: Hillary Clinton received 80% of the vote in Pittsburgh," Peduto added.
President Donald Trump's White House Senior Adviser Steve Bannon gives a thumbs up as he talks with staffers following President Donald Trump's speech (AAP) Source: AAP
Obama slams Trump for exiting Paris climate deal
Barack Obama slammed his successor Trump on Thursday for pulling out of the Paris climate deal, warning that the move would see the United States "reject the future."
"The nations that remain in the Paris Agreement will be the nations that reap the benefits in jobs and industries created," Obama warned in a statement.
"Even in the absence of American leadership; even as this administration joins a small handful of nations that reject the future; I'm confident that our states, cities, and businesses will step up and do even more to lead the way, and help protect for future generations the one planet we've got," he added.
Before leaving office, Obama helped shepherd the landmark international pact that commits all signatory nations to limiting global warming caused by carbon emissions.
"It was bold American ambition that encouraged dozens of other nations to set their sights higher as well," Obama said.
"And what made that leadership and ambition possible was America's private innovation and public investment in growing industries like wind and solar."
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US decision to leave Paris deal a 'major disappointment': UN
The US decision to exit the landmark Paris climate deal is a "major disappointment," a spokesman for UN Secretary-General Antonio Guterres said Thursday, saying America needed to remain a "leader on environmental issues."
The spokesman, Stephane Dujarric, also said Guterres remained confident that US cities, states and businesses would "continue to demonstrate vision and leadership" by working for a low-carbon future.
"The decision by the United States to withdraw from the Paris Agreement on climate change is a major disappointment for global efforts to reduce greenhouse gas emissions and promote global security," the spokesman said in a statement.
"It is crucial that the United States remains a leader on environmental issues," Dujarric added.
"The Secretary-General looks forward to engaging with the American government and all actors in the United States and around the world to build the sustainable future on which our grandchildren depend."
