On Thursday, Virginia-based 4th US Circuit Court of Appeals rejected Trump's efforts to end a lawsuit alleging his ownership of a hotel in Washington D.C. violates anti-corruption provisions of the country's constitution.
The case will now return to a judge in Maryland for further proceedings.
Trump opened the Trump International Hotel, that is situated on Pennsylvania Avenue, not far from the White House, shortly before being elected in the 2016 elections.
Besides the aforementioned hotel case, a group of more than 200 Democrats last year brought another suit challenging the president's business affairs involving foreign officials.
Lawmakers cite the emoluments provision that says the president must obtain permission from Congress before accepting any payment or benefit from a foreign government.
