Otto Warmbier, 22, imprisoned for stealing a hotel sign 2015, died just days after he was medically evacuated from the regime in June 2016.
On Tuesday, Mr Trump claimed the student had been “tortured beyond belief” after Mr Warmbier’s parents said their son was “on his death bed when he came home to the US” in an interview on Fox News.
But North Korea denied the torture claims and instead accused the US of “luring and pushing” Mr Warmbier into breaking the regime’s rules.
North Korea’s foreign ministry said the student was given a “mission” by “an anti-DPRK conspiracy organisation in the US”.
The Foreign Ministry said: “Trump and his clique, for their anti-DPRK propaganda, are again exploiting the death of Otto Warmbier.
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“The fact that the old lunatic Trump and his riff-raff slandered the sacred dignity of our supreme leadership, using bogus data full of falsehood and fabrications, only serves to redouble the surging hatred of our army and people towards the US and their will to retaliate thousand-fold.”
The ministry also claimed Washington was “employing even a dead person for the conspiracy campaign to fuel the international atmosphere of putting pressure on the DPRK”.
North Korea’s accusations follows a coroner report in which the American student was found to have died from a lack of oxygen to his brain – though the exact cause of his death was difficult to pin down.
Hamilton County Coroner Dr Lakshmi Sammarco said: “We don’t know what happened to him and that is the bottom line.”
Dr Sammarco found the death was due to an unknown injury that happened more than a year prior.
He claimed there was no evidence of damage to the teeth or broken bones, but did confirm multiple scars including a 4.3 by 1.6 inch wound on his right foot.
Mr Warmbier was arrested at Pyongyang airport in January 2016. He had visited the state as part of a tour group.
The University of Virginia student was later jailed after a short trial for attempting to steal a propaganda poster from his hotel.
He was sentenced to 15 years of hard labour but released after just 17 months and returned to the US in a coma.
His parents said he returned home with a shaved head and was blind, deaf and “staring blankly into space, jerking violently”, “howling” and making an “involuntary, inhuman sound”.
Mr Warmer said: “It looked like someone had taken a pair of pliers and rearranged his bottom teeth”.
In its first statement on his death, Pyongyang claimed Mr Warmbier fell into a coma after suffering from botulism.