The United States has ordered the closure of Eritrea's consulate in California, in a sign of worsening diplomatic relations.
US embassy officials in the Eritrean capital, Asmara, say the decision is due to a string of restrictions imposed on its embassy.
In response, Eritrea has accused the US of an unjust and unfriendly policy.
Relations between the two countries soured after US-backed Ethiopia entered Somalia to fight Islamist forces.
The BBC's Peter Martell in Asmara says the closure will affect the Eritrean government's attempt to collect a 2% income tax on Eritrean expatriates in California - an important source of income.
This row is the latest in a series of tit-for-tat measures the countries have imposed on each other.
These include Eritrean demands to inspect confidential diplomatic bags against international conventions, as well as imposing visa restrictions - claims rejected by Eritrea.