And this is not their first such act in response to the Trump announcement.
Christians are actually a minority in Nazareth, where 69% of the residents are Muslim and only 30.9% are Christian.
'We have chose to cancel the traditional Christmas singing and dancing because we are in a time of dispute, because of what Trump has said about Jerusalem, ' Nazareth city spokesman Salem Sharara said.
The cancelation will cost the historic town severely as the annual festivities-including a Christmas market, a parade, and multiple concerts-draw tens of thousands of pilgrims. "We are part of one single people..." and Trump's comments removed "all the joy" from the holiday period.
Nazareth, in northern Israel, has a population of about 75,000.
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Trump's decision, which included a plan to move the U.S. Embassy from Tel Aviv to Jerusalem, fulfilled the requirements of a 1995 law that was adopted overwhelmingly by the Senate (93-5) and the House (374-37). The decision also came right as the Christmas season is hitting full swing.
Israel has been self-proclaiming Jerusalem as its capital since the Arab Springs of 1967, but neither the Palestinians nor the global community ever recognized the claim - until Trump, that is. Muslims oppose the move as they see East Jerusalem as a future capital for Palestine.
But this year the mayor determined that the situation in region is too fraught for joy because of Trump's decision to recognize Jerusalem as the capital of Israel.
After the Jerusalem Embassy Act of 1995 was passed, Presidents Bill Clinton, George W. Bush and Barack Obama signed every six months a waiver incorporated in the law allowing the president to delay its implementation for national security reasons. "This shows the world that Jerusalem as the capital of Israel is not up for negotiation, and America is and shall always remain a loyal ally of Israel".