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US & Canadaselected
The 9th US Circuit Court of Appeals said it would not block a ruling by a Seattle court
that halted the order.
Mr Trump responded with an angry tweet saying national security was at risk and
there would be a legal challenge.
It was unclear whether he intended to file an appeal to the Supreme Court or keep
fighting the case in Seattle.
In its 3-0 unanimous ruling on Thursday, the appeals court said the government had
not proved the terror threat justified reviving the ban.
Media captionBob Ferguson: Travel ban was adopted with "little thought, little
planning, little oversight"
The ruling means that people from Iran, Iraq, Libya, Somalia, Sudan, Syria and
Yemen with visas can continue to enter the US, and refugees from around the world,
who were also subject to a temporary ban, are no longer blocked either.
However, the ruling does not affect one part of Mr Trump's controversial executive
order: a cap of 50,000 refugees to be admitted in the current fiscal year, down from
the ceiling of 110,000 established under his predecessor, Barack Obama.
Is Trump's bleak vision of America justified?
Canada town taking refugees from US
Is US heading for constitutional crisis?
They discussed whether the ban violated the constitution by targeting a religious
group (Muslims) but did not reach a conclusion.
Media captionWhere do America's undocumented immigrants live?
The judges also found "no evidence that any alien from any of the countries named
in the order" had committed a terrorist attack in the US.
However, the judges said both sides had made compelling cases: "On the one hand,
the public has a powerful interest in national security and in the ability of an elected
president to enact policies.
"And on the other, the public also has an interest in free flow of travel, in avoiding
separation of families, and in freedom from discrimination."
The appeal judges did not rule on the constitutionality of the order, just on the
question of ending the temporary ban.
The justice department, which made representations to the appeals court on behalf
of the White House, said in a statement it was "reviewing the decision and
considering its options".
Washington Attorney General Bob Ferguson, who had sued over the ban, said it was
a complete victory for the north-western US state.
New York City Mayor Bill De Blasio said: "Here in New York - the safest big city in
America - we will always protect our neighbours, no matter where they came from or
when they got here. Those are our values."
According to the court, the government was unable to say why Mr Trump's ban
addressed a pressing national security threat that a temporary stay of the order
would worsen. The lawyers for the challenging states, on the other hand, convinced
the judges that re-imposing the order at this point would create further chaos by
infringing on the due process rights of those on US soil, regardless of their
immigration status.
Mr Trump tweeted a sharp "SEE YOU IN COURT" following the decision - but which
court? An appeal to the Supreme Court seems likely, although a better move for the
president may be to fight in the lower court until Judge Neil Gorsuch joins the top
court, establishing a conservative majority on the bench.
Read more from Anthony
The justice department appealed to the 9th Circuit in San Francisco, which heard oral
arguments this week.
Media captionHow travel ban prompted a heartfelt act of kindness
Lawyers representing the US government argued that the ban was a "lawful
exercise" of presidential authority.
But the two US states said the ban had harmed universities in their states and
discriminated against Muslims.
Other legal challenges are also under way across the country.
More on the Trump travel ban
Media captionMuslim students on Trump ban: 'I don't belong here'
Banned: An Iraqi family's immigration story
Is Trump's immigration order legal?
Trump is doing a 'fabulous job'
Why did a US veteran give his medal to a stranger?
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