The president also called them "tremendously expensive".
South Korea's defense ministry also issued a statement saying the August exercise was canceled after "close coordination" with the United States. "We are still coordinating additional actions".
Seoul's Defense Ministry said Friday that Defense Minister Song Young-moo held "deep" discussions about the drills with US Defense Secretary James Mattis in a telephone conversation Thursday evening.
The US-South Korean exercise calendar hits a high point every year with the Foal Eagle and Max Thunder drills, which both wrapped up last month.
Trump claims that the summit has radically transformed the North Korea-U.S. relationship.
The past negotiations, which were known as the "six party talks" because they included representatives from the U.S., China, Russia, Japan, South Korea and North Korea, ultimately fell apart in 2009. "This position is very clear and we believe sanctions themselves are not the end", Geng said. "But it is a surprise to me that the United States would consider this an appealing point to concede on because it is 100% what Russian Federation and China have been pushing on our senior leadership and we've pushed back and said that it's not appropriate".
Meanwhile, South Korea Foreign Ministry spokesman Noh Kyu-duk said Tuesday that South Korea welcomed Kim's visit to China and said "the governments of South Korea and China shared the same strategic goal of completely denuclearizing the Korean peninsula".
The imbalance helps explain North Korea's focus on developing nuclear weapons, which grant it a key advantage over South Korea and were the focus of last week's landmark summit between Kim and Trump.
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South Korea has been in talks with North Korea to ease tensions along the heavily militarized border. North Korea proposed the disarming, on a trial basis, the Joint Security Area in Panmunjom, the only site in the DMZ where both countries' soldiers stand nearly face to face, the South's presidential spokesman said on Friday.
North Korea is estimated to have thousands massive artillery guns hidden in hardened shelters among the hills and mountains of the country's rugged terrain. "Over the mid- to long-term, a continued failure to hold the exercises will undermine not only the military but also the political aspects of the alliance", he added.
An immediate question was what to do about the annual "Ulchi Freedom Guardian", as the U.S.
Trump's decision to halt, at least temporarily, joint US-South Korean military exercises - which the US president called "war games" - must have been welcome in Beijing, the sources suggest.
The UFG is a command post exercise based on computer simulated war games centering on a scenario of an all-out war with the North.
The U.S. has 6,800 nuclear warheads, 4,000 of which are stockpiled and 1,800 deployed, and 2,800 retired, according to a report from the Federation of American Scientists.
"This week, the South Korean and United States defence ministries will jointly announce the results of their discussions", the source added.
"Kim is reaching out to traditional friends and rivals and it really complicates the USA position of maximizing pressure on North Korea", said Stephen Nagy, a senior associate professor at the International Christian University in Tokyo.