Although Huawei has been given a reprieve from the initial punishment imposed by the United States, it looks like the Chinese company is close to losing its smartphone business, as more US companies announce they unwillingness to continue to work with the world's number two smartphone vendor.

The SD Association is the latest company that bars Huawei access to its technology. Apparently, the Chinese company has been removed from the trade group as SD Association must comply with orders from the US Department of Commerce, Engadget reports.

Although customers who own Huawei smartphones can continue to buy SD and microSD cards to use in their devices, future Huawei phones will no longer work with the standard. It's unclear what will happen, but Huawei has already included proprietary storage cards in some of its latest flagships, which are called Nano Memory Cards.

Probably not as important as being banned from getting Android OS updates or chipsets from Intel, Qualcomm and AMD, SD Association's move adds to the major issues that Huawei's smartphone business is going to have in the coming months.