U.S. sanctions on North Korea have been in effect for decades and as a result, most American business leaders today have had to pay little or no attention to their impact or implications. In 2008, the North Korea sanctions program intensified and grew.
Now, the Trump administration appears to be further expanding prohibitions by specifically targeting Chinese firms. These conditions, called “secondary sanctions,” mean U.S. businesses could experience the economic effects of our strained relationship with North Korea for the first time.
The current North Korea sanctions program blocks property interests and restricts the export and import of most goods, services, and technology to and from North Korea, both directly and indirectly. This includes items like military supplies and luxury goods, as well as gold, rare earth metals, coal and iron.
There are also North Korean and third-party entities that have been placed on restricted parties lists. This means that Americans are not allowed to do business with parties listed. Additionally, the U.S. Treasury Department has issued guidance advising individuals to act with caution when considering a transaction with a nonblocked entity when one or more blocked persons has ownership or control of the entity.