The diplomat delivered the keynote address at an event for the Alfred E. Smith Memorial Foundation Dinner, making jokes about the Democrat senator whose heritage has been the centre of her discord with the president. "In our toxic political environment, I've heard some people in both parties describe their opponents as enemies or evil", Haley said.
Several weeks ago, Trump announced that Haley would leave her post at the end of 2018. But that hasn't stopped some from confusing her Indian heritage with Native Americans - including, she joked, the president. "I get it", she said.
Haley has often been an unpredictable and independent force in the Trump administration.
Haley made more jokes at the Smith dinner, as reported by CNN.
'Everyone in Washington called me with advice about this speech.
"When the President found out that I was Indian American, he asked if I was from the same tribe as Elizabeth Warren", she quipped, referencing the Democratic senator from MA who released a DNA test this week that showed she has a distant Native American ancestor.
The former Republican South Carolina governor made the jabs at the annual Alfred E. Smith Memorial Foundation Dinner, named after the former NY governor, who was the first Catholic to receive a major party nomination for president when he unsuccessfully ran in 1928.
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"Last year you went with Paul Ryan, who's a Boys Scout, and that's fine, but a little boring", she said.
"In South Sudan, where rape is routinely used as a weapon of war, that is evil", she said, cited by Politico. "It really killed at the United Nations, I got to tell you". She has said she wanted to pay respect to her ancestors, as more of her relatives were dying.
"I saw Jeff Sessions earlier today - not in NY".
"We're all happy for you in one way, but we hate to lose [you]".
Haley said her working with the United Nations was an "honor of a lifetime" and said she would continue to support Trump as "a private citizen".
In front of a crowd of about 700, including Mayor Bill de Blasio, billionaire Michael Bloomberg, and Gov. Andrew Cuomo, Haley poked fun at Trump, Sen. "As a private citizen, I look forward to supporting your re-election as president and supporting the policies that will continue to move our great country toward even greater heights".