Licensed U.S. travelers to Cuba will be allowed to import $400 worth of goods, including $100 of tobacco, such as Cuban cigars, and alcohol combined. However, this is for personal consumption rather than commercial re-sale.
Certain exports from the U.S. including building materials for private residential construction will also be allowed. Travelers to Cuba will be able to use U.S. credit and debit cards as part of the policy change.
Watch: Keys to eliminate Cuba embargo
Cuban access to telecommunications will also open up as providers will be allowed to establish infrastructure to provide internet and telecommunications services to the country's residents. Currently, the nation has one of the lowest's internet penetration rates in the world at merely 5 percent.
Read MoreWhy Venezuela is so desperate, in 5 easy charts
In recent years, the Cuban government has slowly implemented some economic reforms, including letting Cubans buy cell phones and buy and sell used cars.
The U.S. remains Cuba's biggest food supplier. Cuba is facing extra pressure amid the political and economic turmoil in Venezuela. The South American country accounts for roughly 40 percent of Cuba's trade. Cuba largely depends on highly subsidized crude oil from Venezuela. As oil prices have plunged, the Venezuelan economy has fallen apart, putting pressure on it to reduce aid to Cuba and elsewhere.
—AP contributed to this report