The Republican billionaire signed an executive order on Friday that suspended travel visas for anyone from those seven "countries of particular concern" from entering the United States for at least 90 days.
The concern, according to the statement, is that the order's ban against citizens from seven predominantly Muslim nations, however temporary, will be used by Islamic extremists as a rallying cry, thereby playing into the hands of the very enemy Trump has said he is fighting with the order.
It warned that any USA move to extend discriminatory measures against the Iranian nationals would be illegal and said the Islamic Republic reserves the right to react to any violation of worldwide law by Washington.
"Despite its false claims of combating terrorism and ensuring the safety of the American people, (the executive order) will go down in history as a big gift to extremists and their supporters", it said.
Earlier on Saturday, Iranian President Hassan Rouhani said it was no time to build walls between nations and criticised steps towards cancelling world trade agreements, without naming Trump. Other nations may be added. "Even if there are walls between nations, they must be removed", Rouhani said.
More than a million Iranians live in the United States. Mohsen Najari a 33-year-old resident of Tehran the capital said: "Americans themselves are mostly immigrants".
"And to think it's a democratic country doing it", said the 44-year-old.
It is easy to see how Iranian good will toward the USA will quickly diminish; the stories of those who will be affected by this ban are both frustrating and heartbreaking. "The US has good relations with Saudi Arabia so it doesn't matter how many terrorists come from Saudi Arabia". The National Iranian American Council also criticized the ban as shameful and discriminatory. The Iranian move will have a disastrous effect on the efforts of American business entrepreneurs to start new businesses in Iran.