Saudi Arabia called it "unjustified and irresponsible", while France and the UK said they did not support the decision.
But Israeli PM Benjamin Netanyahu hailed it as "a historic day".
President Trump's move reversed decades of US policy. The fate of Jerusalem is one of the thorniest issues between Israel and the Palestinians.
Palestinian President Mahmoud Abbas denounced Donald Trump's move as "deplorable".
Palestinians in the West Bank and Gaza Strip are expected to hold a day of strikes and protests on Thursday.
The UN Security Council is to discuss the issue on Friday after eight of the 15 nations called for an emergency session. The Arab League is to meet on Saturday.