Iran handed over its latest proposal for negotiations to mediators in Pakistan on Thursday night, Iran's state-run IRNA news agency reported.
"They want to make a deal, I'm not satisfied with it, so we'll see what happens," Trump told reporters on Friday at the White House.
The shaky three-week ceasefire between the US and Iran appears to still be holding though both countries have traded accusations of violations.
Trump did not elaborate on what he saw as the latest proposal's shortcomings.
"They're asking for things I can't agree to," he said.
Negotiations have continued by phone after Trump called off his envoys' trip to Pakistan last week, the president said. He expressed frustration with Iran's leadership, describing it as fractured.
"It's a very disjointed leadership," he said.
"They all want to make a deal, but they're all messed up."
While the ceasefire has largely halted fighting in Iran, the US and Iran are locked in a standoff over the Strait of Hormuz, through which a fifth of the world's traded oil and gas passes in peacetime.
A US Navy blockade stopping Iran's tankers from getting out to sea has Iran's economy reeling. The world economy is also under pressure as Iran maintains its chokehold on the strait.
Trump this week floated a new plan to reopen the critical passageway used by America's Gulf allies to export their oil and gas.
Iran's Foreign Minister Abbas Araqchi held a flurry of calls on Friday with many of his regional counterparts, including from Turkey, Egypt, Qatar, Saudi Arabia, Iraq and Azerbaijan, to brief them on his country's latest initiatives to end the war, according to his social media.
European Union foreign policy chief Kaja Kallas also spoke over phone Friday with Araqchi. They discussed ongoing diplomatic efforts to reopen the Strait of Hormuz and long-term security arrangements, Kallas' office said in a statement. Kallas also has been in contact with the EU's Gulf partners.
Pakistan officials have said efforts were continuing to ease tensions between Iran and the US Pakistan Prime Minister Shehbaz Sharif told a Cabinet meeting on Wednesday that a response from Iran was still awaited.
Meanwhile, Iran's imprisoned Nobel Peace Prize laureate Narges Mohammadi has been urgently transferred from prison to a hospital in northwestern Iran after a "catastrophic deterioration" of her health, her foundation said Friday.
The Narges Mohammadi Foundation said the Nobel Prize laureate had two episodes of complete loss of consciousness and a severe cardiac crisis. She was believed to have suffered a heart attack in late March, according to her lawyers who visited her a few days after the incident.
The hospital transfer comes "after 140 days of systematic medical neglect," since her arrest on December 12, the foundation said.
Earlier this week, Trump told Axios that he had rejected Iran's proposal to reopen the strait in exchange for the US Navy lifting its blockade of Iranian ports.
The Iranian proposal would have pushed negotiations on the country's nuclear program to a later date, two regional officials said earlier this week. The officials with knowledge of the proposal spoke on condition of anonymity to discuss closed-door negotiations between Iranian and Pakistani officials.
One of the major reasons Trump has said he went to war was to deny Iran the ability to develop nuclear weapons.
Since the war began on February 28, at least 3375 people have been killed in Iran, and more than 2600 people in Lebanon, where new fighting between Israel and the Iran-backed militant group Hezbollah broke out two days after the war started, according to authorities.
Additionally, 24 people have died in Israel and more than 20 in Gulf Arab states. Seventeen Israeli soldiers in Lebanon and 13 US service members throughout the region have been killed.
