"The re-designation of state sponsor of terrorism has symbolic significance rather than strong pressure", said Kim Yong-hyun, a professor of North Korean Studies at Dongguk University.
"This designation will impose further sanctions and penalties on North Korea and related persons and supports our maximum pressure campaign to isolate the murderous regime".
Air China Ltd. has suspended flights from Beijing to North Korea's capital due to weak demand, a company representative told Caixin on Thursday.
U.S. Secretary of State Rex Tillerson said the U.S. had expressed its willingness to negotiate with North Korea but had yet to receive a response from the North. Kim Hyo-sun, Arirang News. "In this regard, the new sanctions have new characteristics".
North Korea also made $300 million in arms sales in 2015, according to South Korean sources.
While China has backed the United Nations measures, it has been reluctant to take the more drastic step of cutting off oil supplies through a pipeline to North Korea's lone refinery, fearing that regime collapse could lead to chaos on their common border.
The sanctions showed the determination of the U.S.to stifle trade across the Yalu or Amnok River between the Chinese city of Dandong and Sinuiju on the North Korean side.
But he cautions that much depends on cooperation among the region's actors.
The US government is also doing well to encourage other countries to join in.
"North Korean labor overseas, for example, has been sent home".
North Korean-owned enterprise Mansudae Overseas Projects is reportedly behind much of the commercial activity in Africa. So, the way it seems right now, the economy is taking a hit from the sanctions. In recent months, the North conducted its most powerful nuclear test yet and tested a pair of intercontinental ballistic missiles that could potentially reach the US mainland if perfected.
Tensions between the U.S. and North Korea have intensified since Trump took office in January. The U.S. has maintained North Korea must cease its program before negotiations can begin.
Christopher Hill is the former US diplomat who was instrumental in persuading first the secretary of state at the time, Condoleezza Rice, and then President Bush, to pull North Korea's name from the "terror list".
US diplomats responsible for negotiating with the North Koreans in previous years were by and large supportive of strong sanctions - and also of calling North Korea a "terror state". "The armistice agreement was challenged, but it remains in place", he said in a statement.
Trump's decision comes amid heightened nuclear tensions on the Korean peninsula. It was that year that Bush removed North Korea from the "terror" list in hopes of persuading North Korea to abide by agreements hammered out in six-party talks calling for a specific schedule for dismantling its nuclear program.
In the country's first public response to its return to the American blacklist, the official Korean Central News Agency said North Korea has no connection to terrorism and does not care "whether the USA puts a cap of "terrorism" on us or not".