"Soon will be achieved a free Cuba", proclaimed the Republican president, who has called the regime of Raul Castro "brutal".
"Cuba denounces the new measures tightening the blockade, which are destined to fail", the government said in a communique carried on national television.
However, the government also made it clear that it is willing to continue "respectful dialogue" and cooperation with Washington on issues of mutual interest. He had advanced this Friday and Trump himself has ratified it in a speech in Miami, the capital of Cuban exiles in the United States.
President Donald Trump on Friday ordered tighter restrictions on Americans traveling to Cuba and a clampdown on USA business dealings with the island's military, saying "with God's help a free Cuba is what we will soon achieve".
Castro has announced he will step aside as president in February 2018.
He said that the United States is ending travel and trade to the oppressive state, too.
Applauding the Cuban dissidents in the audience, some of whom were tortured by the Castro regime, Trump pledged to "expose" the Cuban dictatorship for its human rights abuses.
Surrounded by Florida Republican officials, the president was unabashed about the political overtones of his election victory and Friday's announcement, saying: "You went out and you voted, and here I am, like I promised".
President Donald Trump reverses an Obama-era deal to normalize U.S. -Cuba relations on Friday in Miami.
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Other members of the luncheon meeting, held in a Miami suburb, expressed disappointment that they were not consulted by US lawmakers from Florida who helped shape the policy, including Sen.
But those who favor a greater opening with Cuba say the president's decision is a setback for improved relations and business.
"Any limitations on travel hurt Cuban small business owners - restaurants, shops, taxis - that depend on travellers for revenue".
The Cuban government response was restrained. "This will be the first time in several decades that the Cuban people will have an economic advantage over the Cuban military". "This policy change is not just a missed opportunity for rural America, which would greatly benefit from increased access to the island's $2 billion agricultural imports market".
Targeting payments to the Cuban military will have an impact on the tourism industry because of the military's vast involvement in the broader Cuban economy, including through ownership of the Gaviota hotel chain.
"The new measures will attack the only sources of growth that the Cuban economy now has: tourism and the private sector", said Pavel Vidal, a Cuban economist at Pontifical Xaverian University in Colombia. "If you restrict its capacity to receive foreign investment and make global payments, the economy is sure to suffer".
It analyzes the virtues of Obama's approach, which had recognized Cuba's independence, sovereignty and self-determination, and the Cuban government in a civilized coexistence relationship.
Run by Mr. Castro's son-in-law Luis Rodriguez Lopez-Callejas, GAESA has joint ventures with several foreign firms that have driven a tourism boom, including the Marriott hotel chain.
But the biggest impact may be felt by Cubans themselves.
Hundreds packed the rickety Manuel Artime Theater - from recently arrived dissidents fleeing Raul Castro's rule, to older veterans of failed Central Intelligence Agency covert operations and the new generation of Cuban-American US lawmakers. And Cuban-Americans will be able to continue to visit their family in Cuba and send them remittances, according to a fact sheet.