In addressing the Trump administration’s biggest national security challenge, the US Treasury sanctioned one person, 27 companies and 28 ships, according to a statement on the US Treasury Department’s website.

The United States also proposed a list of entities to be blacklisted under separate United Nations sanctions, a move “aimed at shutting down North Korea’s illicit maritime smuggling activities to obtain oil and sell coal.”

North Korea has been developing nuclear-tipped missiles capable of reaching the US mainland and Trump and North Korean leader Kim Jong Un have exchanged taunts that have raised fears of war.

In August, Trump threatened to go beyond sanctions by bringing “fire and fury like the world has never seen,” although his administration has repeatedly said it prefers a diplomatic solution to the crisis.

Speaking at a news conference with Australian Prime Minister Malcolm Turnbull, Trump made apparent reference to military options his administration has repeatedly said remain on the table.

“If the sanctions don’t work, we’ll have to go phase two,” Trump said. “Phase two may be a very rough thing, may be very, very unfortunate for the world. But hopefully the sanctions will work.”

The sanctions’ targets include a Taiwanese passport holder, as well as shipping and energy firms in mainland China, Hong Kong, Taiwan and Singapore. The actions block assets held by the firms and individuals in the United States and prohibit US citizens from dealing with them.

The US Treasury said the sanctions were designed to disrupt North Korean shipping and trading companies and vessels and further isolate Pyongyang. They also are aimed at ships located, registered or flagged in North Korea, China, Singapore, Taiwan, Hong Kong, Marshall Islands, Tanzania, Panama and the Comoros.

Last month three Western European intelligence sources told Reuters that North Korea shipped coal to Russia last year and that it was then delivered to South Korea and Japan in a likely violation of UN sanctions.

FRUSTRATED TRUMP

Treasury Secretary Steve Mnuchin said the new sanctions would help prevent North Korea from skirting restrictions on trade in coal and other fuel through “evasive maritime activities.”

“The president is clearly frustrated and rightly so over the efforts that have failed in the past and also over the uptick in testing and the advances we’ve seen in the North Korean program,” a senior administration official told reporters.

At another briefing, Mnuchin stood next to enlarged photos he said showed December 2017 images that revealed ship-to-ship transfers of fuel and other products destined for North Korea in an attempt to evade sanctions.

He said he could not rule out the prospect of the United States boarding and inspecting North Korean ships.

Mnuchin said virtually all shipping currently being used by North Korea was now under sanction and the US government had “issued an advisory alerting the public to the significant sanctions risks to those continuing to enable shipments of goods to and from North Korea.”

Mnuchin said the number of sanctions steps taken by the United States against Pyongyang since 2005 was now 450 with approximately half imposed in the last year.

Christopher Ford, assistant secretary of state for international security and non-proliferation, told reporters sanctions already had affected North Korea’s weapons programs and this was shown by the lengths North Korea was going to try to evade sanctions.

Jonathan Schanzer of the Washington think tank Foundation for the Defense of Democracies said Friday’s move was “the largest tranche of DPRK (North Korea) sanctions” released by the Treasury Department.

“The only thing missing here today is action against Chinese banks,” he said. “We know they continue to undermine our efforts to isolate North Korea.”

Tougher sanctions may jeopardize the latest detente between the two Koreas, illustrated by the North’s participation in the Winter Olympics in the South, amid preparations for talks about a possible summit between North Korea’s Kim and South Korean President Moon Jae-in.

‘WARM CLIMATE’

North Korea last year conducted dozens of missile launches and its sixth and largest nuclear test in defiance of UN Security Council resolutions. It defends the weapons programs as essential to deter US aggression. It has been more than two months since North Korea’s last missile test.

Kim said he wants to boost the “warm climate of reconciliation and dialogue” with South Korea, which hosts 28,500 US troops, after a high-level delegation, including his sister, returned from the Olympics.

In an extension of that rapprochement, the North agreed on Friday to hold working-level talks on Tuesday for the Pyeongchang Winter Paralympics on the North’s side of the border village of Panmunjom. (Reuters)