During his election campaign, the president promised to remove the country from the deal if he won the vote.
The agreement was aimed to reduce tariffs for cross-country trade and had been signed by 12 Pacific Rim countries including Australia, New Zealand and Japan.
The Republican previously slammed the TPP as a “potential disaster for our country” after it was set up by his predecessor Barack Obama during his eight-year term.
Professor Ngaire Woods described the US' withdrawal from TPP as "breathtaking"
It’s a breathtaking act
Professor Ngaire Woods
America’s withdrawal has been seen by some as a step towards an “inward” looking country.
Although the move still needs to be ratified by Congress, Professor Ngaire Woods of Oxford University said the controversial decision was a “very unsettling move”.
“It’s a breathtaking act because the big signal is that the United States is going home, while China is going global,” she told Radio 4’s Today programme.
Donald Trump signed an executive order to withdraw from the TPP on Monday
In a speech last week to the World Economic Forum in Switzerland, China’s president ramped up support for globalisation, likening protectionism to “locking oneself in a dark room”.
Continuing, the Oxford professor said: “We saw President Xi Jingping at Davos lay out a vision that China would lead and support globalisation and cooperation across countries – a really audacious bid to take over leadership at a time the United States is stepping right back.
“So I think for countries in the region, for Japan, Malaysia, Vietnam, Singapore, New Zealand, Australia and so forth, this is a very unsettling move because they’ve got an agreement with China and they’ve balanced those with this forthcoming agreement with the United States.”
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President Xi compared protectionism to "locking oneself in a dark room"
Although China was not part of the TPP as it has its own trading deal with the region, the Dean of the Blavatnik School of Government believes the Asian powerhouse could take the US’ place.
“It’s being rumoured that Australia and New Zealand are suggesting China could step into the United States’ shoes," she said.
“But China already has its own comprehensive agreement, which includes most of the countries in the TPP.”
Professor Woods continued: “Donald Trump’s core view is by renegotiating America’s free-trade agreement with Canada and Mexico, he will bring jobs back to the United States.
“That remains to be seen, as most people would say that what it’s going to do is bring jobs to American robots – that technology in America will take the place of those jobs.”
Not everybody had been critical of President Trump’s decision though, as rival Democratic Bernie Sanders hailed the decision, labelling the trade deal a “disaster”.
The failed US Presidential candidate praised the Republican’s move to sign the executive order as he blamed TPP for the loss of jobs in his country.
Speaking on BBC’s Newsnight, he said: “We’ve lost many millions of decent paying jobs so I campaigned very strongly against the TPP and I’m glad Trump followed through and has gotten us out of the TPP.
“If Trump is going to be honest with the American people, what he has also got to do is to withdraw his manufacturing from countries like Mexico, Bangladesh, Turkey and China where he is paying very low wages.”