In the defamation case, the judge ruled Trump's tweet was the kind of "rhetorical hyperbole" normally associated with politics and public discourse in the United States, and protected under the First Amendment of the US Constitution.
Ms Daniels's lawyer, Michael Avenatti tweeted to say his client would be appealing the judgment, adding he is "confident of a reversal". Otero also went on to order Clifford to pay Trump's legal fees, but has not yet fixed an amount.
"Daniels' other claims against Trump and Cohen proceed unaffected".
"The First Amendment (of the US Constitution) protects this type of rhetorical statement".
The president's former longtime lawyer Michael Cohenpleaded guilty in August to campaign finance violations in the form of hush payments during the 2016 campaign to two women who alleged they had affairs with Trump.
Daniels argued Trump's tweet, posted April 18, "attacks the veracity of her account" of the incident and that Trump's statement was "false and defamatory, and that the tweet was defamation. because it charged her with committing a serious crime", District Judge S. James Otero wrote in his opinion Monday. Trump has denied the affair took place, and cast doubt on her story of being threatened.
"Mr. Trump used his national and global audience of millions of people to make a false factual statement to denigrate and attack Ms. Clifford", the federal court complaint said at the time. "Harder's release because it is as deceptive as his claims about the inauguration attendance", he told Law&Crime in a statement.
Trump's lawyer Charles Harder called the ruling a "total victory for President Trump and total defeat for Stormy Daniels".
Daniels has said she had sex once with Trump in 2006, and carried on a friendship with him for about a year.
A combination photo shows Adult film actress Stephanie Clifford, also known as Stormy Daniels speaking in New York City, and U.S. President Donald Trump speaking in Washington, Michigan, U.S. on April 16, 2018 and April 28, 2018 respectively.