US Treasury Secretary Steven Mnuchin said warned that if the United Nation does not impose fresh sanctions on the rogue state America will take matters into its own hands.
According to the executive order, any country that continued to trade with North Korea will face US sanctions.
It follows the test launch of a hydrogen bomb by North Korea last week which sparked a 6.3 artificial earthquake in the region.
Speaking en route to Washington from North Dakota, Mr Mnuchin said: ”I have an executive order prepared. It’s ready to go to the President. It will authorise me to stop doing trade, and put sanctions on anybody that does trade with North Korea.
“The President will consider that at the appropriate time once he gives the UN time to act.”
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President Trump yesterday told Theresa May “now is not the time to talk” to North Korea as fears grow military action could be looming.
The White House said on Wednesday the US President and British Prime Minister had spoken on the phone about the growing threat on the Korean Peninsula.
And Mr Trump is said to have made it clear that no option, including military action, is off the table.
In a statement, the White House said: “They agreed that this latest reckless act only strengthens the world’s determination to confront the growing North Korea threat.
It added: “President Trump reiterated that now is not the time to talk to North Korea, and made clear that all options remain open to defend the United States and its allies against North Korean aggression.
“The two leaders resolved to continue working closely together on increasing diplomatic and economic pressure on North Korea, and to call on others to do the same.”
Early on Sunday morning North Korea detonated a hydrogen bomb which was 10 times more powerful than North Korea’s fifth nuclear test according to a South Korean weather agency.
And reportedly five times bigger than that of Nagasaki – the nuclear bomb dropped on Japan during the Second World War.
North Korea officials claimed the device could be mounted on its newly developed intercontinental ballistic missiles – which experts have said are capable of reaching the US.
According to North Korea’s state media the test was a “perfect success” and a “meaningful” step in completing the country’s nuclear weapons programme.
It added: ”The H-bomb test was carried out to examine and confirm the accuracy and credibility of the power control technology and internal structural design newly introduced into manufacturing the H-bomb to be placed as the payload of the ICBM.”
President Trump has responded to the test on Twitter, saying: “North Korea has conducted a major Nuclear Test.
“Their words and actions continue to be very hostile and dangerous to the United States…..”
He added: “North Korea is a rogue nation which has become a great threat and embarrassment to China, which is trying to help but with little success.”
More to follow…