He clamped down on some commerce and travel, but left intact many new avenues his predecessor Barack Obama had opened.
Cruises and flights from the U.S. to Cuba will continue, according to CNN, but tourists will be restricted from entering Cuba. "We challenge Cuba to come to the table for a new agreement that is in the best interest of their people and our people, including Cuban-Americans".
The new policy says Americans will no longer be able to plan their own Cuba trip under a people-to-people exchange license.
"Effective immediately, I am canceling the last administration's completely one-sided deal with Cuba". They should impose more sanctions against Cuba.
The lengthy statement then went on to strike a conciliatory tone, saying Cuba wants to continue negotiations with the United States on a variety of subjects.
As President Trump pointed out in his speech earlier today, he intends to keep the USA embassy open "in hope that our countries can forge a much stronger" relationship in the future.
U.S. companies active in Cuba have complained about the threat to business - such as the Starwood hotel chain which a year ago opened a Sheraton in Havana. U.S. airlines and cruise ships will still be allowed to serve the island. "They will not manage to weaken the Revolution, nor defeat the Cuban people". Remittances from people in America to Cubans won't be cut off.
But the changes would ultimately meet four objectives, according to the White House: Ensure compliance with US law, hold the Cuban government accountable for alleged human rights abuses, further the interests of the USA and the Cuban people, and "empower the Cuban people to develop greater economic and political liberty".
The changes won't go into effect until new documents laying out details are issued.
A group of 55 Cuban businesspeople sent a letter this week to Trump's daughter and adviser, Ivanka, warning against the policy changes. Under the expected changes, the USA will ban American financial transactions with the dozens of enterprises run by the military-linked corporation GAESA, which operates dozens of hotels, tour buses, restaurants and other facilities.
"New restrictions on engagement with Cuban economy only pushes Cuba to China and Russian Federation who will gladly make up the difference", argued former White House official Ben Rhodes, the architect of Obama's Cuba policy.
"#Cuba Now it is official: these are the new enemies of US Foreign Policy". Marco Rubio (R-Fla.), who helped craft the new regulations, said at Friday's event with Trump.
Together with other 54 co-sponsors, Flake was introducing a bipartisan bill to allow Americans to travel to Cuba for tourism purposes.
"This is the simple truth of the Castro regime", Trump said.
It further said that "once again the USA government is resorting to the coercive measures of the past".
Mr. Trump will reinstate travel and commercial restrictions eased by Mr. Obama previous year, during that administration's attempts to obtain additional concessions from the Cuban government.
"The president's decision to revert back toward an old policy of isolation with Cuba - a policy that failed to work for decades - is a mistake", Bennet said in a statement.
Granma, the official organ of Cuba's Communist Party, described Trump's declarations in real-time blog coverage Friday as "a return to imperialist rhetoric and unilateral demands".
In fact, Trump is getting bipartisan support for his call to bring back Shakur to US soil.
The Cuban government argued that it would only be a retread of the past, and that the Trump administration is not in a position to lecture. Trump, on the other hand, described his move as an effort to bring about a "free Cuba" after more than half a century of communism.
"But it should not be expected that to that end, Cuba will make compromises to its very sovereignty", it said.
In Cuba, U.S. tour companies were required to contract guides, tour buses and hotel rooms from the Cuban government, meaning U.S. travelers were effectively under the constant supervision of the government.
The Cuban government rebuked those statements in a lengthy response Friday, writing that Trump's executive order betrays a double standard on human rights.
Members of Congress who favor closer U.S. -Cuba ties have urged Trump to maintain Obama's approach.
Obama announced in December 2014 that he and Castro were restoring ties.
"U.S. tourist visit the private restaurants, they never eat at government- owned restaurants".