Trump told Acosta to sit down and demanded someone take away his microphone.
Sanders used a 15 second video clip that appeared to have been significantly manipulated to prove her accusation.
An association representing the Washington press corps urged the White House to immediately reverse "this weak and misguided action".
"The fact that CNN is proud of the way their employee behaved is not only disgusting, it's an example of their outrageous disregard for everyone, including young women, who work in this administration", Ms Sanders said.
Trump says his pass has been suspended "until further notice".
Sanders accused Acosta of "placing his hands on a young woman" as the reason for pulling his credentials in a tweet.
"But, with the White House escalating to DEFCON 1 and yanking the credentials, it's kind of turning Jim Acosta into a journalistic martyr, many in the news business are standing behind him".
At the same time, Trump is able to continue his claims of the press being the "enemy" of the populace with the scathing statement from Sanders.
During the 90-minute news conference, Trump snapped at Acosta after he asked why the president had called the Central American migrant caravan "an invasion" and "demonized immigrants".
Acosta refused to give up the microphone when a White House intern tried to grab it from him, infuriating Trump.
North Korea 'really angry' at United States as tensions rise
The development comes amid strained ties between South Korea and the U.S. over how to negotiate denuclearisation with North Korea. Asked if he still plans to have the second summit, the United States president said, "Sometime next year, I would say".
"I don't know why you would say that", President Trump responded. The way you treat [White House press secretary] Sarah Huckabee [Sanders] and other people is frightful.
"Secret Service just informed me I can not enter the grounds for my 8 pm hit", Acosta tweeted Wednesday evening. "The White House must cease its continuous assault on the First Amendment". He said she was rude for interrupting another reporter, though he did briefly answer one of Ryan's questions.
Trump called him a "rude, awful person" before Acosta was seen refusing to give his mic to a young woman.
"I understand", Alexander said, attempting to ask a question.
"I think you should let me run the country".
"This merits a forceful response, and a lawsuit would be reasonable", said Jonathan Peters, a historian who teaches at the University of Georgia Law School and is the press freedom correspondent for Columbia Journalism Review.
Following a lengthy back-and-forth, a White House intern tried to take the microphone from Acosta, who held onto it. "Pardon me, ma'am", Acosta said in the original video, though the audio was stripped from the edited version.
Albright said videos like this pose an even greater risk of perpetuating misinformation than completely faked news videos, because they contain a grain of truth and will likely be given the assumption of accuracy.
At a combative, lengthy news conference Wednesday, U.S. President Donald Trump congratulated himself for achieving what he termed a "tremendous success" in the previous day's midterm elections.
Trump has repeatedly called him "fake news", turning him into a symbol of the president's general animus toward the news media.
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