China has implemented retaliatory measures after the us imposed tariffs on $34 billion worth of Chinese products in July.
The US presidents comment's, delivered by tweet, amount to the strongest criticism yet of North Korea from Mr Trump since he met the country's leader Kim Jong-un in June.
Experts have long warned the summit produced only vague agreements and that there has been no sign Pyongyang is taking serious steps towards getting rid of its nuclear weapons and production capabilities.
Pompeo had been planning a trip next week after North Korea said talks had 'derailed.' It would have been his fourth visit there.
Some of the blame rested with China, he said, "because of our much tougher Trading stance".
'Using diplomacy to resolve the North Korean security threat once and for all remains one of President Trump's greatest priorities, ' Pompeo said.
In fact, this isn't the first time Trump has scrapped a scheduled meeting with Pyongyang; he called off his Singapore summit with Kim in May, . before hastily rearranging it. "President Obama said that North Korea was our biggest and most unsafe problem", he added.
In remarks at the State Department Thursday morning, Stephen Biegun said "The issues are tough, and they will be tough to resolve".
Some analysts suggested Trump's cancellation of the Pompeo trip may also be a negotiating ploy.
Trump then lavished praised on North Korean leader Kim Jong Un - a murderous dictator and rampant human rights violator - with "warmest regards" and "respect".
Earlier this week, Pompeo named a Ford Motor Co. executive as special envoy for North Korea to try to get disarmament back on track.
Lawmakers and legal experts say these momentous developments-combined with reports that some of Trump's closest business and media allies have flipped on him and are now cooperating with federal prosecutors in exchange for immunity-indicate that the walls are closing in on the president.
Other than sanctions relief, the North, backed by South Korea, has been seeking a declaration of the end of the Korean War. The North for its part has been demanding the US ease or lift sanctions that are crippling its economy as well as fast-track discussions to formally declare an end the 1950-53 Korean War, which technically never ended.
Pompeo has led negotiations with the isolated nation to attempt to push Pyongyang to dismantle its nuclear program.
"Those hopes are dashed, at least for now", he added.
This will be the first of many efforts by Trump to distract attention from the legal hurricane that is gathering force around him. But if the president is no longer content to pretend that North Korea is denuclearizing, the self-engineered "nuclear crisis" that he resolved in Singapore could flare up again in the near future.
"I know you all want to speed up these things", State Department spokeswoman Heather Nauert said in response to a question about the negotiations' progress. "We've been very upfront about how this will take some time".