The situation of granting citizenship by birthplace has been turned into a joke" - AFP quoted Mr. Trump as saying at the Oval Office.
The move was made after the US Supreme Court in late June rejected Mr. Trump's previous efforts to restrict citizenship by birth - a right stipulated in the US Constitution. Mr. Trump called the ruling "very regrettable".
We are adjusting because this is very unfair," he said.
Stephen Miller - one of Mr. Trump's closest advisors - said that the new decree also aims to deny citizenship by birth to some other groups, including children of members of "foreign terrorist organizations" as well as "many lobbyists and activists representing foreign governments".
According to Mr. Miller, this move will ensure that "a large number of people who should not have enjoyed citizenship by birth will no longer be eligible to receive this right".
Previously, President Donald Trump also signed an executive order stipulating that children born in the US whose parents entered illegally or only had temporary visas would not automatically become US citizens.
However, lower courts blocked the implementation of the decree, arguing that according to the Civil Rights Clause in the 14th AM of the US Constitution, almost everyone born on US territory is a US citizen.
This view was later also agreed upon by the US Supreme Court.
The 14th Amendment stipulates: "All people born or naturalized in the United States and under the jurisdiction of the United States are US citizens".
This regulation does not apply to people not under US jurisdiction, such as children of foreign diplomats.
According to current US law, consular officials have the right to refuse visas if they believe that the main purpose of the visa applicant is to come to the US to have children.
President Donald Trump's administration once argued but was unsuccessful that the 14th Amendment - passed after the American Civil War in 1861-1865 - was mainly aimed at establishing citizenship for those who were once slaves, not applying to children of undocumented immigrants or foreigners.
Mr. Trump's previous decree was based on the argument that people who reside illegally or only have visas in the US are not "under jurisdiction" of this country, so their children are not eligible for automatic US citizenship.
Efforts to restrict citizenship by birth place are part of President Donald Trump's larger campaign to tighten immigration. This policy includes a plan to deport millions of undocumented immigrants and end protection measures from deportation for citizens of more than 10 countries.
