The US is to increase restrictions on Huawei to try to cut off all access to American technology for the Chinese company.
Huawei’s access to US components and technology, including Google’s music and other smartphone services, was cut off last year.
Those penalties were tightened in May when the White House barred vendors worldwide from using US technology to produce components for Huawei.
The Commerce Department said the extra restrictions were needed because Huawei has “continuously tried to evade” the earlier sanctions by using technology supplied by third parties.
The new rule is designed to block Huawei’s access to commercially available chips made with tools acquired from the US.
“The new rule makes it clear than any use of American software or American fabrication equipment to produce things through Huawei is banned, and requires a licence,” Commerce Secretary Wilbur Ross said.
“It’s really a question of closing loopholes to prevent a bad actor from access to US technology, even if they try to do it in a very indirect, very tricky manner.”
Huawei has become a byword for the growing tensions between the US and China over technology and security.
Mr Trump has repeatedly said that any country working with Huawei would lose access to US intelligence gathering.
Speaking to Fox News on Monday, the president said: “We don’t want their equipment in the United States because they spy on us.
“And any country that uses it, we’re not going to do anything in terms of sharing intelligence.”
In July the UK announced a major U-turn by announcing that all Huawei technology would be stripped out of the UK’s 5G network by 2027.
Acting on the advice of the National Cyber Security Centre, Boris Johnson accepted that US sanctions on Huawei were a “game changer” in relation to the impact of the firm’s technology on the UK’s national security.
For its part, Huawei has repeatedly denied accusations it might facilitate Chinese spying. Beijing has accused Washington of using national security as an excuse to stop a competitor to US tech industries.