He said the suspension would initially last for 60 days and apply to those seeking permanent residence.
Trump had tweeted Monday he was introducing the policy to protect the 22 million unemployed Americans.
“It would be wrong and unjust for Americans laid off by the virus to be replaced with new immigrant labour flown in from abroad,” Trump said at the White House briefing.
“We must first take care of the American worker.”
Trump said the suspension of the green cards would not affect some categories of immigrants.
He did not elaborate on the exemptions.
The new immigrant policy is expected to attract fiery opposition.
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