"Open yourselves to political and economic freedoms", President Trump said.
Trump said he decided against restoring the wet-foot-dry-foot policy to prevent Cubans from attempting to cross the Straits of Florida-an often unsafe journey on homemade boats.
The lengthy statement goes on to strike a conciliatory tone, saying Cuba wants to continue negotiations with the USA on a variety of subjects.
He cancelled the Trans-Pacific Partnership trade deal, announced he would withdraw the United States from the Paris climate accord, and is attempting to repeal and replace Obamacare, his predecessor's signature policy accomplishment.
Marriott is now the only US hotel company with a property open in Cuba, and this new regulation could put the property's license renewal - and the opening of a planned second property - in jeopardy.
The U.S. Embassy in Havana, which reopened in August 2015, will remain as a full-fledged diplomatic outpost, though likely without an ambassador.
Trump's actions will restrict the ways US citizens can travel to Cuba and block business deals by American companies that might give revenue to the Cuban military. "There is a tremendous opportunity for success in Cuba for Arkansas farmers, and the lifting of credit restrictions on agriculture is a logical first step".
Travellers going there for non-academic educational purposes will again be required to visit with organized tour groups run by US companies. The policies followed by numerous USA governments, with the exception of Obama's, have only led to political confrontation.
"I keep my promises", Trump said. US farmers can continue selling their crops to the Cuban government.
Both of Connecticut's Democratic senators expressed concern with the announcement from the president on U.S. -Cuba relations. "Our new policy begins with strict compliance with United States law", Trump said.
"A year and a half ago ... an American president landed in Havana to outstretch his hand to a regime".
The Trump White House announced that the Treasury Department had 30 days to issue these new regulations on businesses and travel, and that the policy would not take effect until those changes were finalized, "a process that may take several months".
The goal of the changes, Trump said, is to put more money into the pockets of the Cuban people.
Trump said he was putting the Castro regime "against the wall", by not only demanding "free elections" on the island, but also the release of political prisoners.
By law, travel to the island from the U.S.is still generally limited to 12 authorized categories such as educational activity, humanitarian projects and support for the Cuban people.
The revised policies will also prohibit financial transactions with the Grupo de Administracion Empresarial S.A., the Cuban military's business division that controls much of the country's economy. Marco Rubio, R-Fla., Roque, Vic.
Sen. Jeff Flake is criticizing President Donald Trump's new policy on Cuba. Rubio opposed Obama's re-engagement with Cuba. It was mostly the Communist government and Cuban military who were benefiting, they said.