The U.S. Department of Commerce proposed a new rule to impose countervailing duties on countries that undervalue their currencies against the dollar.

Commerce Secretary Wilbur Ross said in a statement on Thursday the new rule will put foreign exporters on notice that the Commerce Department can countervail currency subsidies that harm American industries. 

Ross added that foreign nations would no longer be able to use currency policies to take advantage of American workers and businesses. 

Countervailing duties are levied when an importing country determines that prices of imported items were lowered by the exporting country's subsidy, leading to unfair competition and damaging its domestic industry. 

The move could be aimed at countries such as China and South Korea, which are on the U.S.' monitoring list for potential currency manipulation.