"I will make the man holding the prerogative of the supreme command in the USA pay dearly for his speech calling for totally destroying the D.P.R.K.", Kim said referring to the county's official name, the Democratic People's Republic of Korea.
In a tweet, the president called Mr. Kim "obviously a madman who doesn't mind starving or killing his people".
Asked by reporters what Kim might have meant by the "highest level of hard-line countermeasure", The New York Times reported that North Korea's foreign minister Ri Yong-ho said that only Kim would know, but that he thought the North might be considering the largest test of a hydrogen bomb ever in the Pacific Ocean, according to the South Korean news agency Yonhap.
It was the first time for a North Korean leader to issue such a direct statement against a US president, dramatically escalating the war of words between the former wartime foes and raising the global nuclear standoff to a new level.
Such a test would be considered a major provocation by Washington and its allies.
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So much for keeping the U.S. What really stands out is the overall tone of Kim's first-person response - the first of its kind from the North, Seoul says.
Trump's latest steps to punish foreign companies that deal with the North was the latest salvo in a US -led campaign to isolate and impoverish the government of Kim Jong Un until it halts the missile and nuclear tests. He says the US keeps pressing Russian Federation and China to do more to squeeze Pyongyang economically.
Kim characterized Trump's speech to the world body as "unprecedented rude nonsense".
The White House, meanwhile, took the another step in its so-called "peaceful pressure" campaign to rein in Pyongyang's nuclear program, expanding sanctions on North Korea and those who do business with the country.
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Taking aim at perceived adversaries, KCNA has labelled former US President George W. Bush a "half-baked man", ex-South Korean leader Park Geun-Hye a "crafty prostitute", and called Trump's predecessor Barack Obama her "pimp".
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'The US sanctions on the DPRK will prove futile and it will be just like sweeping the sea with (a) broom, ' it said.
President Donald Trump warned Friday night that the USA must find a way to stop North Korea because "we can't have mad men out there shooting rockets all over the place". The North Korean also said that Trump comments were reflective of "mentally deranged behaviour".
There was no immediate confirmation from the Chinese government that it had imposed a financial embargo on North Korea. "The order enhances the treasury department's authorities to target any individual or entity that conducts significant trade in goods, services, or technology with North Korea".
"To prevent sanctions evasion, the order also includes measures created to disrupt critical North Korean shipping and trade networks", he said.
Choe Ryong-hae, a vice chairman of the Workers' Party, read Kim's statement during the rally of the WPK Central Committee members held at the committee office in Pyongyang on Friday.
China Moves To Limit Fuel, Textile Trade With North Korea
The country also has tested more than a dozen missiles this year, some of which have flown over Japan - a strong USA ally. China also will ban textile imports from the North, the ministry said.