The tweet, which has since been deleted, was aimed at Valerie Jarrett, former Obama staffer, and reportedly said “Muslim brotherhood & planet of the apes had a baby = vj,”.
"Roseanne's Twitter statement is abhorrent, repugnant and inconsistent with our values, and we have decided to cancel her show," ABC Entertainment president Channing Dungey said in a statement.
Barr has since apologized for the Tweet, saying she is “truly sorry” and described it as a “bad joke”.
"First of all, I think we have to turn it into a teaching moment," Ms Jarrett said on MSNBC of the tweet.
"I'm fine. I'm worried about all the people out there who don't have a circle of friends and followers coming to their defence."
The reboot of the popular 90s sitcom had just been renewed for a second season after proving ABC's biggest hit of the 2017-2018 season with an average of 18 million viewers.
Barr’s co-stars have condemned the comments as "inexcusable" and have expressed their sadness over the show being cancelled.