Huawei was barred from being a member of the SD Association (SDA), the trade group responsible for standardizing SD and microSD cards.
This means that Huawei will no longer be able to offer products using official SDA branding and will exclude the company from being involved in setting standards going forward.
The SD Association said that Huawei was dropped from the trade group in order to comply with recent orders from the US Department of Commerce.
Last week, the U.S. Commerce Department blocked Huawei from buying U.S. goods amid its escalating trade spat with China. In addition, President Trump signed an executive order that bans the sale and use of telecommunications equipment from companies that pose risks to national security. The ban applies to goods and services with 25% or more of U.S.-originated technology or materials, and may, therefore, affect non-American firms.
Huawei claims that its customers will be able to continue purchasing and using SD and microSD cards with its products for the time being.
Google suspended Android support for the company's phones and chipmakers Intel, Qualcomm, AMD and ARM have cut off supplies to the Chinese tech maker.
Huawei commands nearly 30% of the European market according to industry tracker IDC, and shipped 208 million phones last year, including half to markets outside China.
Hit by crippling U.S. sanctions, Huawei could see shipments decline by as much as a quarter this year and faces the possibility that its smartphones will disappear from international markets, analysts said.
Smartphone shipments at Huawei, the world’s second-largest smartphone maker by volume, could tumble between 4% and 24% in 2019 if the ban stays put, according to Fubon Research and Strategy Analytics.
Huawei has said it has been developing the technology it needs to be self-sufficient for years.
Consumers will likely switch to high-end devices from Samsung Electronics and Apple, and also buy mid-end phones from domestic rivals OPPO and Vivo, analysts said.