The law aims to punish Russia for its alleged meddling in the 2016 US elections and its actions in Ukraine
Mr Trump accused Congress of overreach on the legislation.
He said the measures, signed by Donald Trump, demonstrated the complete impotence of the US president, who he said had been humiliated by Congress.
In signing the Countering America's Adversaries Through Sanctions Act on Wednesday, he attached a statement calling the measure "deeply flawed".
The legislation limits the amount of money Americans can invest in Russian energy projects, and makes it more difficult for US companies to do business with Russia.
It also imposes sanctions on Iran and North Korea.
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