Severe trouble encountered in a difficult craft (8)
I believe the answer is:
hardship
'severe trouble' is the definition.
'a difficult craft' is the wordplay.
'a difficult' becomes 'hard' (I've seen this in another clue).
'craft' becomes 'ship' (ship is a kind of craft).
'hard'+'ship'='HARDSHIP'
'encountered in' acts as a link.
(Other definitions for hardship that I've seen before include "Need" , "difficult to take" , "Adversity, affliction" , "State of misfortune or affliction" , "Difficult circumstances" .)