Trump announces sanctions against companies and banks trading with North Korea

President Donald Trump has signed an executive order that would enable the US to sanction individual companies and institutions that finance trade with North Korea.

Mr Trump announced the decision yesterday during a lunch with Japanese prime minister Shinzo Abe and South Korean president Moon Jae-in. He said the measure would disrupt other trade avenues for North Korea in efforts to halt its nuclear weapons programme.

Mr Trump said “tolerance for this disgraceful practice must end now”.

“Our new executive order will cut off sources of revenue that fund North Korea’s efforts to develop the deadliest weapons known to humankind,” he said.

North Korea’s textiles, fishing, information technology and manufacturing industries were among those the United States could target, the president said.

Mr Trump also saluted China’s central bank for what he said was a move to stop its banks from trading with North Korea.

The Chinese move, which Mr Trump described as very bold and unexpected, was not confirmed by Beijing but could cut a vital source of foreign currency for the regime of leader Kim Jong-un.

During the meeting, Mr Moon praised Mr Trump’s bellicose speech on Tuesday to the United Nations about what he called the North Korean threat, in which he said America would “totally destroy” the Asian state.

Mr Moon said that United States had “responded in a very good way”.

He regarded North Korea’s missile programme as a provocation and deplorable, prompting Mr Trump to compliment his choice of words.

His opponent during last year’s election, Hillary Clinton, was criticised for referring to Trump supporters as belonging in “a basket of deplorables”. Mr Trump called it “a lucky word”.

The president said that the US and South Korea were working on improving trade but North Korea was a higher priority.