China called on South Korea and the US to suspend the joint military drills as the two nations began annual war games.
The drills are always met with threats of strong military counteraction.
The North Korean video comes days after Trump's warned of "fire and fury like the world has never seen" by threatening a missile strike on Guam.
The reclusive state said it was "carefully examining" a plan to attack Guam, but leader Kim Jong-un said he will watch the "foolish and stupid conduct of the Yankees" a little more before deciding whether to give an order for the missile test.
The latest video warns that not a single bullet has landed in its territory during 150 invasions and US is threatened by "just one announcement by the North's commander in chief."
According to translations cited by the Washington Post, the video shows missiles launching and warns the US it won't know whether their rockets will harass them.
It then shows a missile hitting Guam accompanied by the caption: "If a single bullet lands in the territory of Guam, the United States' bluffing will be revealed to the entire world as fake."
The US President is depicted in a cemetery sounded by crosses in the propaganda video. Photo / Uriminzokkiri Screengrab/YouTube
Vice President Pence, Secretary of Defense Jim Mattis and Secretary of State Rex Tillerson also get a cameo appearance, with their faces surrounded by fire.
"All North Korea needs to do is to place its hand on a button and press it when the right time comes," the video continues.
"The US will live in fear and anxiety the whole time. They will sweat so much in this hot summer weather."
Such propaganda videos are not uncommon for North Korea.
However in an interview with news.com.au last week, Dr Euan Graham, International Security Program director at the Lowy Institute, said it was important to read between the lines when it came to North Korea's aggressive statements.
War games
The start of the US and South Korea drills not only caused North Korea to react but also prompted a warning from Beijing.
China called on the two allies to suspend the joint military drills which have infuriated nuclear-armed Pyongyang.
"The current situation on the Korean peninsula is highly sensitive and fragile, which requires the directly concerned parties including South Korea and US to make joint efforts to ease the tensions," Chinese foreign ministry spokeswoman Hua Chunying said.
Beijing has pleaded for a resumption of long-dormant six-nation talks to peacefully resolve the nuclear crisis.
But its proposal for North Korea to suspend its arms programs in return for the United States to halt military drills in the region has so far been ignored.
"We don't think the joint exercise will be conducive to easing the current tensions. And we urge relevant parties to (seriously consider) the suspension-for-suspension proposal," Mr Hua said.
The propaganda video depicts several US officials including Vice President Mike Pence, right. Photo / Uriminzokkiri Screengrab/YouTube
Tens of thousands of South Korean and US troops are taking part in the Ulchi Freedom Guardian joint military drills, a largely computer-simulated exercise that runs for two weeks in the South.
Around 17,500 US troops will participate in the drills - a cutback from last year.
Australia warned
The video isn't the latest provocation to come from the DPRK, the acronym used by the secretive state.
Only yesterday North Korea warned Australia has committed a 'suicidal act' by backing up US and South Korean military forces in the case of an attack.
North Korean news agency KCNA warned Australia's allegiance to the US and its decision to take part in a military drill in South Korea would come at a cost.
Last week, Prime Minister Malcolm Turnbull told 3AW that an ANZUS treaty would be invoked and Australia would send troops to the aid of the US "if there is an attack" on the ally, prompting an angry response from North Korea.
