The Federal Aviation Administration had previously held out while many countries banned the aircraft from flying over their airspace.
But it said on Wednesday it was suspending the aircraft after analysing new data gathered at the crash site.
Boeing will suspend the entire 371-strong fleet of 737 Max planes.
The US is the last country to suspend the aircraft following the disaster.
The crash on Sunday in Addis Ababa killed 157 people.
It was the second fatal Max 8 disaster in five month after one crashed over Indonesia in October, killing 189 people.