United States President Donald Trump has insulted the physical appearance of adult film actress Stormy Daniels, calling her "Horseface" in a tweet about a recent court ruling.

Key points: Mr Trump said he could now "go after" Ms Daniels in Texas

Mr Trump said he could now "go after" Ms Daniels in Texas Ms Daniels and her lawyer hit back, slamming his treatment of women

Ms Daniels and her lawyer hit back, slamming his treatment of women Mr Trump also claimed Senator Elizabeth Warren's DNA test was "useless"

Ms Daniels, whose real name is Stephanie Clifford, alleges she had a sexual encounter with Mr Trump in 2006.

A US judge yesterday dismissed Ms Daniels' defamation lawsuit against Mr Trump, which she brought after he tweeted about a composite sketch of a man she says threatened her in 2011 to keep quiet about the alleged affair.

The judge on Monday said Mr Trump's tweet was a "hyperbolic statement" protected under the First Amendment.

Ms Daniels' lawyer Michael Avenatti said they would be appealing the decision.

In a new tweet posted on Tuesday morning (local time), Mr Trump labelled Ms Daniels "Horseface" and Mr Avenatti as a "3rd rate lawyer".

He added that he could now "go after her" in Texas, hinting at legal action of his own.

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Ms Daniels hit back at Mr Trump's remarks, saying his reaction "demonstrated his incompetence, hatred of women and lack of self control on Twitter AGAIN!"

She concluded the tweet by saying, "Game on, Tiny".

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Mr Avenatti also was quick to respond to Mr Trump's comments, calling the President "a disgusting misogynist and an embarrassment to the United States," calling on Mr Trump to "bring everything you have" against them.

'Bogus DNA test'

Donald Trump claims Elizabeth Warren lied about having Native-American heritage in order to advance her career. ( Reuters: Yuri Gripas )

In a series of tweets sent earlier in the morning, Mr Trump also took aim at Elizabeth Warren, a Democrat senator who he claims lied about having Native-American heritage in order to advance her career.

The US leader has frequently mocked the senator by calling her "Pocahontas" at political rallies and on Twitter — in response, Senator Warren yesterday released a DNA test she took that shows "strong evidence" that she had a Native-American ancestor.

Her decision to release the results was criticised by the Cherokee Nation, which said such exams are useless in determining tribal citizenship.

In return, the senator said on Twitter that she was aware of this and had "respect" for the distinction.

However, Mr Trump seized on the criticism, and wrote on Twitter that the senator's DNA test was "bogus".

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Mr Trump did not provide any proof for the claims made in the tweets.

No aid for Honduras if migrant caravan continues: Trump

Up to 3,000 Honduran migrants began the trek to the US this week. ( AP: Moises Castillo )

Mr Trump also threatened to withdraw funding and aid from Honduras if it does not stop a caravan of migrants that is heading to the United States, in his latest effort to show his administration's tough stance on immigration.

The message, driven home by Vice President Mike Pence, who said he spoke to Honduran President Juan Orlando Hernandez, could further encourage the Central American country to move closer to China because of what it sees as weak US support.

Up to 3,000 migrants crossed from Honduras into Guatemala on Monday on a trek northward, after a standoff with Guatemalan police in riot gear and warnings from Washington that migrants should not try to enter the United States illegally.

Mr Trump tweeted that if the caravan of migrants is "not stopped and brought back to Honduras, no more money or aid will be given to Honduras, effective immediately!"

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It was not clear how Honduras would be able to exercise control over people who had already left the country. Honduran authorities did not immediately respond to the US messages.

Mr Pence followed up by tweeting that he had spoken to Mr Hernandez and "told him US will not tolerate this blatant disregard for our border and sovereignty".

Last week, Mr Pence told Central American countries the United States was willing to help with economic development and investment if they did more to tackle mass migration, corruption and gang violence.

Thousands of migrants have left the impoverished region in recent years.

ABC/wires