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The Iraqi parliament on Sunday voted on a resolution calling for an end to the stay in Iraq of military forces affiliated with the US coalition fighting the Islamic State.
About 5,000 U.S. troops are currently deployed in that country.
"In the event of any hostility, if they do anything that we deem inappropriate, we will impose sanctions on Iraq, very strong sanctions on Iraq," Trump told reporters on Sunday on Presidential Air Force One en route from Florida to Washington.
He said that under the possible sanctions, those imposed on Iran would appear "a bit bland."
Trump has argued that the government in Baghdad should offset the cost of part of the infrastructure the US has built in Iraq, including a modern air base whose construction, he said, has paid the US billions of dollars.
"We don't leave if they don't pay us," he said.
The Iraqi parliament adopted a resolution Sunday urging the government to expel foreign troops from Iraq and ensure that they no longer use Iraqi territory, water or airspace after the U.S. liquidated Iran's military commander Kasem Suleimani on Friday.
Parliament's resolutions, unlike the law, are not binding on the government, but Iraqi Prime Minister Adel Abdul Mahdi has earlier called on parliament to end the presence of foreign troops.
He said preparations were being made for the departure of foreign forces from the country, according to Iraqi news agency INA.
"Iraqi officials in various ministries are preparing a memorandum on legal and procedural steps to implement a parliamentary decision to leave foreign forces," Abdel-Mahdi's office said in a statement after the resolution was adopted.
Speaking to parliament earlier, Abdel-Mahdi said that the activities of foreign forces in Iraq should be limited to training and not include military missions.
He added that there were only two options at the moment to end the foreign military presence or to arrange a retreat schedule.
A State Department spokeswoman said the US was "disappointed" by the move by the Iraqi parliament.
"While we await further clarification on the legal nature and effect of today's resolution, we strongly urge the Iraqi leadership to rethink the importance of the two countries' economic and security ties and the continued presence of a global coalition to defeat IS," Morgan Ortagus said in a statement.
The Iraqi foreign ministry has previously sent a formal complaint to the United Nations Secretary-General and the Security Council about a US attack in which Suleimans and several Iraqi militia leaders were killed at a Baghdad airport on Friday.
The complaint alleges "US attacks and aggression on Iraqi military positions and the killing of Iraqi and allied high commanders on Iraqi soil," the ministry said in a statement.
It described the attacks as "a dangerous breach of Iraqi sovereignty and conditions of US presence in Iraq" and called on the Security Council to condemn the attacks.
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