Trump also said that he has been working with Chinese President Xi Jinping to halt North Korea's nuclear program.
"People say this is all part of its brinkmanship strategy to force the U.S. to come forward for negotiation".
Deputy Prime Minister Barnaby Joyce has called North Korea's decision to test a hydrogen bomb in the Pacific Ocean a "crazy" idea.
In a rare statement issued by a leader of the reclusive state, Kim condemned Trump for making "eccentric words" at the U.N. General Assembly that he claimed insulted him and his country, according to the Korean Central News Agency.
Tillerson won't say what the USA response would be if Kim's government tested a hydrogen bomb in the Pacific Ocean. North Korean state TV later showed a solemn-looking Kim, dressed in a gray Mao-style suit, reading the statement. Reports say it was actually on the teleprompter and not a Trump ad lib. He also promised to "tame the mentally deranged USA dotard with fire". "We are talking about putting a live nuclear warhead on a missile that has been tested only a handful of times".
North Korea could test a powerful nuclear weapon over the Pacific Ocean in response to US President Donald Trump's threats of military action, the country's foreign minister has warned.
"I'm sure he's listening", Trump said Friday of North Korean dictator Kim Jong Un, who personally responded to the president's United Nations speech, threatening to rein in Trump "with fire". Yet it is still South Korea, and its capital Seoul close to the heavily militarized frontier with the North, that faces the greatest immediate risk in a military conflict.
"Foreign financial institutions must choose between doing business with the United States or facilitating trade with North Korea or its designated supporters", the order says.
On one side of the square a giant poster depicted innumerable red missiles plunging towards a collapsing US Capitol, with the slogan "Korea's Answer".
Apartment buildings in Pyongyang, North Korea, on September 22, 2017.
Hans Kristensen, a nuclear expert at the Federation of American Scientists, says he thinks the North Korean threat is likely bluster, but if it happened "there's a real possibility" the USA would take military action in response, given the potential for an accidental detonation over a populated area and the potential threat to sea or air traffic. Asked for comment last week, the Foreign Ministry said China has always fully implemented United Nations sanctions on North Korea but opposes "unilateral" restrictions imposed by another country on Chinese entities. The wayward regime fired intercontinental ballistic missiles (ICBMs) twice in July.
U.S. Secretary of State Rex Tillerson expressed hope in an interview with ABC that sanctions and "voices from every corner of the world" could lead North Korea back to talks, but admitted intensifying rhetoric had left Washington "quite challenged".