President Donald Trump has sent a message to the world that he intends to re-establish the United States as an economic and military superpower.

His commitment to rolling back on the green agenda may force other governments and big corporations to re-adjust their own policies to accommodate Mr Trump’s plans to tear up global agreements. BP is one company that has already pulled back on its commitments.

In an inaugural address in Washington that will concern climate activists, the 47th president pledged to tackle inflation, in particular energy costs, by rebuilding the United States’ oil and gas reserves.

Mr Trump will withdraw the United States from the Paris climate accords, the White House said in a statement. The 2015 agreement aimed to limit global warming to 1.5C above pre-industrial levels. The US joins  Iran, Libya and Yemen as the only countries outside of the agreement.

Repeating his call to the energy companies to “drill, baby, drill”, he said the US has large reserves of oil and gas “and we are going to use it”. He said the US would export its supplies to the rest of the world.

“From this moment on, America’s decline is over,” he declared, also committing to rebuilding the automobile industry in a new “golden age”.

Despite having electric vehicle manufacturer Elon Musk among his top team he said would end the EV mandate allowing Americans to buy the automobile of their choice.

He repeated his plan to impose tariffs on foreign imports, though not immediately, a move that caused the pound to rise.

“We will tariff and tax other countries to enrich our citizens. There will be massive amounts of money coming into our treasury,” he insisted.

However, suggestions he may delay the tariffs may encourage the UK government to accelerate negotiations on a trade deal while there remain concerns in Scotland that he will again target Scotch whisky and other luxury goods which led to the loss of millions of pounds of exports when he last imposed tariffs.

He previously promised 10% tariffs on all imports, 25% on Canadian and Mexican goods and 60% on items coming from China, but observers say he may be less aggressive once officials report back.

Danni Hewson, head of financial analysis at AJ Bell, said: “The delay to tariffs has boosted European stock markets with London’s FTSE 100 soaring to fresh record highs.

“The pound has made up some ground against the dollar, though that’s more to do with the weakening dollar than any shift in sentiment about the UK economic growth picture and it’s interesting to note the changing fortunes between the UK’s premier blue-chip index and the more domestically focused FTSE 250.”

“There will be hope the tariff delay signals an intention to negotiate trade deals amid questions around how special the so-called special relationship truly is to the new president. Whatever the nature of any deal, it will likely be transactional and will also have to deliver for Americans looking to Trump to improve their lives.”

The FTSE 100 closed 15.32 points higher at 8,520.54 while the FTSE 250 fell by 0.54%. Sterling enjoyed its biggest one-day gain against the dollar in more than a year, rising by as much as 1.1% to $1.23

Mr Trump said he will end the process of social engineering in public life. “We will forge a society that is colour blind and merit based. From today it will be the policy of the US that there are only two genders: male and female.”

On Martin Luther King day he pledged to make his “dream” a reality, a reference to the civil rights campaigner’s ‘I have a dream’ speech in 1963. He declared that 20th January 2025 will go down as “liberation day”.

Mr Trump announced a national emergency on the Mexican border, a pledge that prompted a standing ovation. Troops will sent to deal with those trying to cross illegally.

“All illegal entry will immediately be halted and we will begin the process of deporting millions to the place from where they came,” he said, adding: “We will be changing the Gulf of Mexico to Gulf of America.”

He will set up a Department of Government Efficiency and stop all government censorship to “bring back free speech to America”, a policy likely to have been influenced by Musk.

He said he will rebuild the US as a military power, but designed to keep world order rather than fight wars.

“My proudest legacy wil be as a peacemaker and a unifier,” he said. “As I speak the hostages in the Middle East are coming home to their families.”