The U.S. Treasury accused North Korea's supreme leader of "notorious human rights abuses."
Pyongyang wants the U.S. to halt its military exercises with South Korea in return.
Otto Warmbier admitted to trying to steal a propaganda sign from a Pyongyang hotel.
The new sanctions go further than any regime in two decades and are aimed at cutting off funds for its nuclear programs.
North Korea has been under U.N. sanctions for a decade.
The additional sanctions target three companies as well as 10 North Korean government officials.