The move on Thursday came two days after the US President Donald Trump has warned North Korean leader Kim Jong-un in his address at the UN General Assembly that the US, if threatened, would totally destroy his country of 26 million people.
Announcing the executive order, Trump said the measure would allow sanctions against "individuals and companies that finance and facilitate trade" with Pyongyang.
"Our executive order will cut off sources of revenue that fund North Korea's efforts to develop the deadliest weapons known to humankind," he added.
Industries set to be targeted include textiles, fishing, information technology and manufacturing.
Pyongyang has resisted international pressure, conducting its sixth and largest nuclear test on September 3, and launching numerous missiles this year, including two intercontinental ballistic missiles and two other rockets that flew over Japan.

Trump Goals
Trump stopped short of going after North Korea's biggest trading partner, China, and praised its central bank for ordering Chinese banks to stop doing business with North Korea.
He also did not mention Pyongyang's oil trade. Four sources told Reuters China's central bank has told banks to strictly implement United Nations sanctions against North Korea.
Richard Gowan, non-resident fellow at New York University's Center on International Cooperation, said that China would find Trump's move "irritating" and would "respond by calling on the US to open a dialogue" with North Korea.