"I think it's losing its meaning because whenever you call everything racist, then what does that mean anymore?" she said, while speaking on "The Todd Starnes Show."
Starnes had asked Trump -- who also serves as a senior advisor for her father-in-law's re-election campaign -- about Wednesday's rally, which many claimed featured a racist chant.
"It's like the boy who cried wolf. People don't want to be made to feel badly all the time about everything and really, that's what's happening," she said.
She added that it was "ridiculous" for people to hurl racism accusations against people they disagreed with and that Americans were "sick and tired" of it.
Although the president distanced himself from the "send her back" chant, he also claimed the media blew the issue out of proportion.
"It is amazing how the Fake News Media became “crazed” over the chant “send her back” by a packed Arena (a record) crowd in the Great State of North Carolina, but is totally calm & accepting of the most vile and disgusting statements made by the three Radical Left Congresswomen," Trump tweeted on Friday.
He was referring to Omar and other freshmen congresswomen who had been feuding with him.
"Mainstream Media, which has lost all credibility, has either officially or unofficially become a part of the Radical Left Democrat Party," he said. "It is a sick partnership, so pathetic to watch!"