The move comes just five days after Trump announced plans to nominate Ratcliffe.
Senator Mark Warner, of the Senate Intelligence Committee, said Thursday that if Ratcliffe padded his resume, it would be "clearly disqualifying".
He pointed to Herman Cain and Stephen Moore, whom the president had been eyeing for seats on the Federal Reserve Board, and Ronny Jackson, the former White House doctor Mr. Trump tapped to lead the Department of Veterans Affairs.
Three days later, he's out.
Coolness from Senate Republicans and reports in the press about past overstatements about Ratcliffe's record appear to have prompted the White House to calculate that it was wiser to cut bait now than try to press ahead against those headwinds. Ratcliffe might have survived, and may have withdrawn too early, in the view of some.
Even top Republicans who are usually complimentary of the president's picks were slow to back Mr. Ratcliffe.
"The nomination was greeted with a distinct lack of enthusiasm".
The president's nomination has to be confirmed by the Senate, but members of both parties signaled opposition to the nomination.
China threatens to respond to U.S. tariff hike
A ban on exports to China's Huawei, which is part of the ongoing trade war between the USA and China, hangs over the company. He added that the tariffs could be raised if the talks continue to falter, but allowed that they could also be removed.
It wasn't just the lack of experience.
Trump blamed Ratcliffe's withdrawal on attacks from the media but the nomination of the Republican lawmaker from Texas had raised broad concerns about politicization of the sensitive post and his Senate confirmation was far from assured.
A Trump loyalist who has served for six months on the House of Representatives' Intelligence Committee, Mr Ratcliffe gained attention last week by criticising former Special Counsel Robert Mueller during a hearing on Mr Mueller's investigation into Russian interference in the 2016 United States election.
Which makes this the third time in the past few months that they've blocked Trump in that regard.
The President, according to two officials with knowledge of the matter who requested anonymity because they were not authorized to comment publicly, has made a decision to block Principal Deputy Director of National Intelligence Sue Gordon, who is widely admired on Capitol Hill and among intelligence officials, from rising to the role of acting DNI when outgoing chief Dan Coats leaves the post on August 15. Seems unlikely, though: One of Hurd's ongoing political problems was that he wasn't a yes-man for Trump, having criticized him repeatedly on immigration. Yet here he is, publicly telling his selection for director of national intelligence that the appointment is not worth enduring the "slander and libel" of the "LameStream Media".
According to a source familiar with the situation, Trump is considering Republican Representatives Michael McCaul and Devin Nunes for the job.
Although Mr Ratcliffe had touted his counter-terrorism experience while in the US Attorney's Office for the Eastern District of Texas, media outlets including Reuters have reported on concerns that he may have exaggerated his achievements as a prosecutor. But the left hates him, and the Collinses and Gardners would get nervous again about installing someone who's more likely than a career bureaucrat would be to politicize intelligence.
Trump said that he would announce a new nominee for the DNI position soon. It's one thing for the president to want to bring in a new director, quite another to refuse to let Gordon deliver a briefing in the White House.