The first set of USA sanctions against Iran that had been eased under the landmark nuclear accord have gone back into effect.
Mr Trump's contempt for the nuclear deal dates back to his time as presidential candidate.
The German carmaker had announced plans in 2016 to return to Iran after economic sanctions were lifted under an global agreement that sought to limit the country's nuclear program.
The European countries have promised to try to mitigate the impact of renewed US sanctions to persuade Tehran to continue to abide by the deal's terms.
US Secretary of State Mike Pompeo said sanctions are an important pillar in US policy toward Iran and will remain in place until the Iranian government radically changes course.
The EU said it is simultaneously implementing a "blocking statute" as the new sanctions take effect, stopping European companies from complying with the US sanctions unless they have permission to do so. "I am asking for WORLD PEACE, nothing less". Trump tweeted on Tuesday.
"We want to put unprecedented pressure on the government of Iran to change its behavior, and so far they've shown no indication they're prepared to do that".
European Union officials, however, were quoted on Monday as saying that a number of other countries had asked them for details on the blocking regulations as they also explore ways to bypass sanctions.More news: Pepsi's first female CEO is stepping down after 12 years
"Negotiations with sanctions doesn't make sense".
Despite days of protests and strikes across the country, there appeared to be less unrest as sanctions returned Tuesday - although that said little about the depth of despair, particularly among poorer sections of society.
Iran is also taking solace in the fact that most of the world strongly opposes Trump's policy, with China, India and Turkey all saying they are unwilling to substantially cut purchases from Iran when the U.S. reimposes sanctions on the energy sector on November 5.
President Hassan Rouhani on Monday said Iran could hold talks with the United States only if Washington proved its trustworthiness.
The European commission today put in place never-before-used legislation to protects the continent's firms from USA sanctions which not only target Tehran but their trading partners. "But talks need honesty". Iran's currency has lost around half its value since Trump announced the U.S. would withdraw from the nuclear pact.
European countries fear that by abandoning the deal, Washington risks undermining Rouhani and strengthening the hand of his more hardline opponents, who have long argued that the West would never allow Iran to prosper.
"We are determined to protect European economic operators engaged in legitimate business with Iran", the foreign ministers of Britain, France, Germany and the European Union said in a joint statement on Monday.
The 2015 agreement called for Iran to sharply curb its uranium enrichment program and other nuclear activity in exchange for the end of most sanctions.