golfballs
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R Congressman Justin Amash (he knows his ****):
https://www.law.cornell.edu/uscode/text/8/1182
(f) Suspension of entry or imposition of restrictions by President
Whenever the President finds that the entry of any aliens or of any class of aliens into the United States would be detrimental to the interests of the United States, he may by proclamation, and for such period as he shall deem necessary, suspend the entry of all aliens or any class of aliens as immigrants or nonimmigrants, or impose on the entry of aliens any restrictions he may deem to be appropriate.
The law you reference is passed in order not to skew immigration makeup in favor of a certain group. Trump's EO clearly is made on the basis of national security. So the law above is where his power to do this emanates. Based on the wording, he did this to the T
Also, there is clear precedent as both Congress and Obama have affirmed that country of origin can be used to prevent people from entering the US.
https://www.law.cornell.edu/uscode/text/8/1187 (a)(12)