Trump's intention to quit the climate change deal has been highly rumoured this week.
He said the agreement gave the US a "bad deal" and benefited other countries over the US.
"In order to fulfil my duty to protect its citizens, the US will withdraw from the Paris Climate Accord but begin negotiations to renter the Paris accord on terms that are fair to the US, its businesses, its workers and its tax payers.
"We're getting out but we're going to start to negotiate for a deal that's fair," he said in an address at the White House.
The process to quit the Paris deal, agreed in 2015, could take up to three or four years.
The US joins Syria and Nicaragua as the only countries not to sign up to the agreement.
The president's announcement has been met with defiance from the wind industry:
Steve Sawyer, general-secretary of the Global Wind Energy Council (GWEC) said: "Sad, but this will only be a small speedbump on the road to a sustainable energy future, where wind and other renewables are winning on the economics alone."
American Wind Energy Association CEO Tom Kiernan, said Trump's decision to quit the deal won't slow the expansion of renewables in the US.
"Despite the decision today to pull the US out of the Paris Climate Accord, the wind industry expects to continue as an American economic success story," Kiernan said.
"We’re growing and hiring nine times faster than the average industry by providing affordable, reliable and clean electricity. Wind has created over 100,000 American jobs, and we now make parts for turbines in 500 factories across 43 states.
"Wind already saves American companies and consumers billions a year on their energy bills.
"Current policies will keep wind power growing rapidly through 2020, and we see many positive trends that will continue to drive demand," he added.
RenewableUK's executive director, Emma Pinchbeck, added: "Far from putting America First, withdrawing from action on climate change means that President Trump has put the US behind the rest of the world.
"Countries across Europe, as well as India and China, have all reaffirmed their commitment to the Paris Agreement in recent days.
"The global renewables boom is inevitable with or without President Trump. These technologies, including wind, wave and tidal energy, are not just the best options for tackling climate change - they're now the best options for powering the economy.
"Most Governments know this - here in the UK, since May 2010, we've installed more than 11 gigawatts of wind energy, enough to power more than 7.8 million homes. We must continue to show leadership by pushing ahead to deliver our carbon budgets - and leave behind those foolish enough to miss the opportunity".
The head of General Electric, parent company of turbine manufacturer GE Renewable Energy, Jeff Immelt tweeted his reaction:
Disappointed with today’s decision on the Paris Agreement. Climate change is real. Industry must now lead and not depend on government.— Jeff Immelt (@JeffImmelt) June 1, 2017