"Effective immediately, I am cancelling the last government's one-sided deal with Cuba".
U.S. citizens will not be able to plan their own private trips to Cuba and their incorporation into educational excursions will be subject to strict rules and possible audits by the Treasury Department.
Havana decried the "hostile rhetoric that recalls the time of open confrontation", and "return to the coercive methods of the past".
As part of the new policy, Americans will no longer be able to plan their own private trips to Cuba, and those who go as part of authorized educational tours will be subject to strict new rules and audits to ensure that they are not going just as tourists.
But Trump leaves in place the newly opened U.S. Embassy in Havana, as well as regular direct flights and cruises to Cuba.
The "wet foot, dry foot" policy, which once let most Cuban migrants stay if they made it to USA soil but was terminated under Obama, is to remain terminated.
During the initial talks between Cuba and the Obama administration, Fox 5 traveled to Havana where Chesimard, who is on the FBI's list of the most wanted terrorists, has been living for almost 30 years. This will essentially shield US airlines and cruise lines serving the island. "That could bring them under fire now, and they could find themselves much weaker".
The Obama administration had restored diplomatic relations with its Cold War foe in December 2014.
By restricting individual U.S.travel to Cuba, the new policy also risks cutting off a major source of income for Cuba's private business sector, which the policy is meant to support.
However, President Trump is not rowing back on all parts of Obama's deal. He has already pulled the United States out of a major global climate treaty and is trying to scrap his predecessor's landmark healthcare programme. Castro's government has clearly stated it does not intend to change its one-party political system.
The new measures prohibit financial transactions with Cuba's military-backed tourism conglomerate GAESA, which had hoped for a windfall from a new surge in American visitors.
"When he's cutting back on travel, he's hurting us, the Cuban entrepreneurs".
The lengthy statement goes on to strike a conciliatory tone, saying Cuba wants to continue negotiations with the US on a variety of subjects. "As someone who had the privilege of traveling to Cuba with President Obama, I saw firsthand how the country has a desire for openness and information". And he gave Cuba some conditions if it wants to have a relationship with the United States.
Mexico's foreign ministry urged the United States and Cuba to resolve their differences "via dialogue". Americans are not restricted from traveling to other nations with oppressive governments, including some that are as bad or nearly as bad as Cuba's.
Responding to Trump's announcement, the Cuban government said in a statement that American attempts to fundamentally change the island were unlikely to succeed. "It is an offence against Latin America".
Castro also said that "the U.S. is not in a position to give us lessons".
Once implemented Trump's policy is expected to curtail U.S.travel by creating a maze of rules for Americans to obey. But the Republican leadership in Congress has long blocked such a move, and it appears unlikely to budge.
Earlier yesterday, Trump vowed to overhaul Obama's policies. This could make it easier for dissidents to organize, and other Cubans to utilize information sources not controlled by the state.