After Kim asserted that he had a nuclear button at the ready, Trump last week dismissed the taunt by saying in a tweet that the U.S. button at his disposal was bigger and more powerful.
The comment drew criticism, including from former Vice President Joe Biden, who said it caused allies to lose confidence in Washington.
Asked on the ABC program "This Week" whether the president's tweet was a good idea, Haley said: "I think that (Trump) always has to keep Kim on his toes. It's very important that we don't ever let him get so arrogant that he doesn't realize the reality of what would happen if he started a nuclear war."
"We're not going to let them go and dramatize the fact that they have a button right on their desk and they can destroy America," she said. "We want to always remind them we can destroy you too, so be very cautious and careful with your words and what you do."
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.