"The United States is a compassionate nation. We are proud that we do more than any other country to help the needy, the struggling and the underprivileged all over the world," Trump said.
The two countries had been due to stage the event at North Korea's Mount Kumgang on February 4 - just days before the Games in Pyeongchang get underway.
A dozen North Korean hockey players wearing white-and-red winter parkas crossed the heavily fortified border into South Korea earlier Thursday, as about 30-40 conservative activists shouted anti-Pyongyang slogans at a nearby border area.
The sanctions have been tightened significantly in the past year as Kim Jong Un's government accelerates toward perfecting a nuclear weapon that can threaten the US mainland.
"The US, in collusion with Canada, created the scene of war simulation by summoning the foreign ministers' meeting of the countries participated in the Korean War," Xinhua quoted an official from the North Koreas's Foreign Ministry as saying.
Nuclear-armed Pyongyang agreed last week to take part in next month’s Pyeongchang Games which are taking place just 80 kilometres (50 miles) south of the Demilitarized Zone (DMZ) that divides the peninsula.
Rodong Sinmun, the ruling party newspaper, lashed out at Trump in a commentary on Tuesday that took issue with the U.S. commander in chief’s Jan. 3 tweet that “I too have a Nuclear Button".
In an interview on Thursday, 'The Wall Street Journal' reported that Trump had developed a positive relationship with the North Korea's leader despite their differences.
North Korea warned South that "they should know that train and bus for carrying our delegation to the Olympics are still in Pyongyang."
The US has also made it public it is deploying aircraft carrier USS Ronald Reagan in Japan and the USS Carl Vinson in the waters off the Korean Peninsula, besides extra fighters and other strategic assets to South Korea.
White House said Trump and Moon Jae-in still underscored the importance of continuing maximum pressure campaign against North Korea over its development of nuclear weapons.
President Moon Jae-in has previously floated the idea of a summit with Kim under conditions.
During the talks, the North Korean delegation said it would send an Olympic delegation, which includes officials, athletes, cheerleaders, journalists and others, South Korea’s Vice Unification Minister Chun Hae-sung told reporters
Donald Trump said that some dialogue or direct conversation with Kim Jong Un was not beyond the realm of possibility.
Citing unnamed sources, Japan’s Kyodo News service and broadcaster NHK said Chang was headed to Switzerland, where he could meet with International Olympic Committee officials.
Unification Ministry spokesman Baik Tae-hyun said he expects the two Koreas will use a recently restored cross-border communication channel to try to determine who will head their respective delegations next week.
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