U.S. imposes more North Korea sanctions, Trump warns of 'phase two'

By Steve Holland and Christine Kim

WASHINGTON/SEOUL (Reuters) - The United States said on Friday it was imposing its largest package of sanctions to pressure North Korea to give up its nuclear missile program, and President Donald Trump warned of a "phase two" that could be "very, very unfortunate for the world" if the steps did not work.

In addressing the Trump administration's biggest national security challenge, the U.S. Treasury sanctioned one person, 27 companies and 28 ships, according to a statement on the U.S. 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 U.S. 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 U.S. citizens from dealing with them.

The U.S. 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.

Source: Yahoo News