Kim Jong Un has vowed to take action at the "highest-level" against Trump's move.
"We will consider with seriousness exercising of a corresponding, highest level of hard-line countermeasure in history," said the English-language statement issued by the Korean Central News Agency, adding that Trump made a declaration of war.
"Whatever Trump might have expected, he will face results beyond his expectation. I will surely and definitely tame the mentally deranged U.S. dotard with fire," Kim said.
The expanded sanctions against Pyongyang target financial institutions. The measures also ban ships and aircraft which have visited North Korea from entering the United States for 180 days.
"It is unacceptable that others financially support this criminal rogue regime," Trump had said ahead of his talks on Thursday with Japan's Prime Minister Shinzo Abe and President Moon Jae-in of South Korea
"Tolerance for this disgraceful practice must end now," he added, referring to the provision of resources to the North.
The sanctions also allow Treasury Department authorities to target individuals who provide goods, services or technology to North Korea.
A day earlier, officials from the Democratic People's Republic of North Koreas as it prefers to be called, appeared in front a panel of the United Nations Committee on the Rights of the Child to say that international sanctions threaten the survival of the nation's children.
Han Tae Song, Pyongyang’s ambassador to the U.N in Geneva, said, “The persistent and vicious blockade and sanctions against the DPRK are not only hampering the endeavors for the protection and promotion of the rights of the child but also seriously threatening their right to survival.”
The U.N. Security Council has unanimously imposed nine rounds of sanctions on North Korea since 2006, the latest of which were agreed earlier this month