President Donald Trump has scrapped plans for an infrastructure advisory council after two similar panels dissolved this week amid backlash to Trump from corporate America.

"The President's Advisory Council on Infrastructure, which was still being formed, will not move forward," a White House official told CNBC.

Trump signed an executive order to start setting up the council last month. A nonprofit had sued the Trump administration over the council, saying the president tried to set it up without the require public disclosures, according to The New York Times.

After Trump's response to violence at a white nationalist rally over the weekend that many considered inadequate, business leaders started to drop out of advisory councils. On Wednesday, a day after Trump doubled down on blaming "both sides" for the violence and suggested some good people marched with the white nationalists, executives on one panel decided to disband the group.

Trump then tweeted that he would dissolve that panel — the Strategic and Policy Forum — and a separate manufacturing council "rather than putting pressure" on the business leaders.

— CNBC's Lori Ann LaRocco contributed to this report.