Haley: North Korea launch a ‘clear and sharp military escalation’

US Ambassador to the United Nations Nikki Haley on Wednesday called North Korea’s intercontinental ballistic missile launch test a “clear and sharp military escalation” and said US military action remained on the table.

She also warned China and other countries supporting North Korea that their trade with the US could be at risk if they do not stop aiding the Pyongyang regime.

This picture taken and released on July 4, 2017 by North Korea's official Korean Central News Agency (KCNA) shows the test-fire of the intercontinental ballistic missile Hwasong-14 at an undisclosed location. North Korea declared on July 4 it had successfully tested its first intercontinental ballistic missile -- a watershed moment in its push to develop a nuclear weapon capable of hitting the mainland United States. / AFP PHOTO / KCNA VIA KNS / STR / South Korea OUT / REPUBLIC OF KOREA OUT ---EDITORS NOTE--- RESTRICTED TO EDITORIAL USE - MANDATORY CREDIT "AFP PHOTO/KCNA VIA KNS" - NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS THIS PICTURE WAS MADE AVAILABLE BY A THIRD PARTY. AFP CAN NOT INDEPENDENTLY VERIFY THE AUTHENTICITY, LOCATION, DATE AND CONTENT OF THIS IMAGE. THIS PHOTO IS DISTRIBUTED EXACTLY AS RECEIVED BY AFP. / STR/AFP/Getty Images

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“The US is prepared to use the full range of our capabilities to defend ourselves and our allies,” Haley said. “One of our capabilities lies with our considerable military forces. We will use them if we must, but we prefer not to have to go in that direction.”

Wednesday’s UN Security Council meeting came in response to North Korea’s first ICBM test, which US officials assess was a new kind of missile that had a range of about 5,500 kilometers (3,400 miles), capable of hitting Alaska.

This picture taken and released on July 4, 2017 by North Korea's official Korean Central News Agency (KCNA) shows North Korean leader Kim Jong-Un inspecting the test-fire of intercontinental ballistic missile Hwasong-14 at an undisclosed location. North Korea declared on July 4 it had successfully tested its first intercontinental ballistic missile -- a watershed moment in its push to develop a nuclear weapon capable of hitting the mainland United States. / AFP PHOTO / KCNA VIA KNS / STR / South Korea OUT / REPUBLIC OF KOREA OUT ---EDITORS NOTE--- RESTRICTED TO EDITORIAL USE - MANDATORY CREDIT "AFP PHOTO/KCNA VIA KNS" - NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS THIS PICTURE WAS MADE AVAILABLE BY A THIRD PARTY. AFP CAN NOT INDEPENDENTLY VERIFY THE AUTHENTICITY, LOCATION, DATE AND CONTENT OF THIS IMAGE. THIS PHOTO IS DISTRIBUTED EXACTLY AS RECEIVED BY AFP. / STR/AFP/Getty Images

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Haley said “the world is on notice” after the launch, calling for an “escalated diplomatic and economic response” and warning countries not to water down resolutions against Pyongyang.

“There are countries that are allowing, even encouraging, trade with North Korea in violation of UN Security Council resolutions,” Haley said. “Such countries would also like to continue their trade arrangements with the United States. That’s not going to happen.”

Haley called out China specifically, noting that 90% of North Korea’s trade is with China.

“Much of the burden of enforcing UN sanctions rests with China,” she said. “We will work with China … but we will not repeat the inadequate approaches of the past that have brought us to this dark day.”

On Wednesday morning, President Donald Trump tweeted, “Trade between China and North Korea grew almost 40% in the first quarter. So much for China working with us - but we had to give it a try!”

Within 24 hours of the launch, the US and South Korea announced they had held a new ballistic missile drill to counter “North Korea’s destabilizing and unlawful actions.”

The American general leading US troops in South Korea, Gen. Vincent K. Brooks, said in a statement Wednesday the only thing stopping war with North Korea was “self restraint.”

“Despite North Korea’s repeated provocation the ROK-US alliance is maintaining patience and self restraint,” Brooks said in a joint statement with South Korean Joint Chiefs of Staff chairman Gen. Lee Sun Jin.

“As the combined live fire (drill) demonstrated, we may make resolute decisions any time, if the Alliance Commanders in Chief order. Whoever thinks differently is making a serious misjudgment.”

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Updated 11:17 PM EDT, Wed July 5, 2017

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Russia, China call for ‘freeze’

Haley’s warnings did not appear to convince Russia or China, however, who are pushing their own plan for North Korea to stop testing ballistic missiles while the US and South Korea stop joint training exercises, known as a “freeze for freeze” proposal to get North Korea back to the negotiating table.

Chinese President Xi Jinping (R) shakes hands with Russian President Vladimir Putin prior to a meeting on July 4, 2017 at the Kremlin in Moscow. Russian President Vladimir Putin and Chinese leader Xi Jinping met July 4 against a backdrop of mounting tensions over North Korea ahead of G20 summit talks with US President Donald Trump. The talks were also expected to discuss North Korea after Pyongyang claimed the launch of its first inter-continental ballistic missile, and Trump urged China to "end this nonsense once and for all". / AFP PHOTO / POOL / Sergei IlnitskySERGEI ILNITSKY/AFP/Getty Images

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Russian Deputy Ambassador to the United Nations Vladimir Safronkov also disputed whether the test was in fact an ICBM – the range is right on the 5,500 kilometer line that’s the minimum for an ICBM – and said sanctions are not the solution.

“Sanctions cannot be a political cure-all,” Safronkov said.

Chinese Ambassador to the UN Liu Jieyi, who is president of the Security Council, did not address the question of sanctions at the meeting. He criticized North Korea for launching an ICBM but also was critical of the US and South Korea for deploying the Terminal High Altitude Area Defense missile defense system, or THAAD, in South Korea.

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Pieces of the US defense system arrived in South Korea in March, and it was declared partially operational one week before South Korea’s new President Moon Jae-in was elected.

After taking power, Moon suspended its deployment, in line with his pre-election promise to put any decision on its future to vote in the country’s parliament.

China has long opposed THAAD’s deployment, which could in theory be used to spy on its defense and nuclear deterrent systems.

Liu said the THAAD deployment “seriously undermines the strategic security interests” of China and was “not conducive” to de-nuclearizing the Korean Peninsula.

Before the meeting, Liu was asked by reporters whether there should be additional sanctions imposed on North Korea, and he said it should be up to Council members, without taking a position himself.

CNN’s Matt Abshire contributed to this report