Trump used a rare televised national address to make the surprise announcement,which will take effect at midnight on Friday in the US (Saturday AEDT).
"This is the most aggressive and comprehensive effort to confront a foreign virus in modern history,"Trump said.
"I'm confident that by continuing to take these these tough measures we will significantly reduce the threat to our citizens and we will ultimately and expeditiously defeat this virus."
Earlier in the day theWorld Health Organisation (WHO) officially declared the coronavirus a pandemic and the National Basketball Association (NBA) announced it was suspending its season.
Trump's announcement caused the Australian stock market to tumble to its lowest levels since late 2016 and US futures dropped,foreshadowing another day of losses on the US stock market.
The Dow Jones industrial average officially tipped into a bear market on Wednesday (Thursday) for the first time since the global financial crisis.
The travel restrictions will apply to foreign travellers who have visited any country in the so-called"Schengen Area"during the past fortnight.