"We will not be moving Canada's embassy from Tel Aviv," Trudeau said.
Israeli PM Benjamin Netanyahu said many would follow the United States, adding that contacts were underway, Reuters reported. However, he did not name the countries.
"President Trump has immortalized himself in the chronicles of our capital. His name will now be held aloft, alongside other names connected to the glorious history of Jerusalem and of our people," Netanyahu said.
The United Nations Security Council is likely to meet on Friday to discuss the US decision as most countries including US allies Britain, France and Germany spoke out against US move to recognise Jerusalem as the capital of Israel.
The EU's foreign policy chief, Federica Mogherini, said: "The European Union has a clear and united position. We believe the only realistic solution to the conflict between Israel and Palestine is based on two states and with Jerusalem as the capital of both."
Protests broke out in Amman in areas inhabited by Palestinian refugees, Istanbul too witnessed protests by Palestinians as several gathered the US consulate.
Hamas urged Palestinians on Thursday to abandon peace efforts and launch a new uprising against Israel in response to US President.
"We should call for and we should work on launching an intifada in the face of the Zionist enemy," Hamas leader Ismail Haniyeh said in a speech in Gaza.
He said Palestinians, Muslims and Arabs should hold rallies against the US decision on Friday, calling it a "day of rage".