The US president launched his attack on Twitter against the embassy's move from Grosvenor Square in the posh Mayfair area of the city to Nine Elms, south of the Thames, in a USD 1.2 billion project.
He wrote: "Reason I cancelled my trip to London is that I am not a big fan of the Obama administration having sold perhaps the best located and finest embassy in London for 'peanuts',only to build a new one in an off location for 1.2 billion dollars.Bad deal. Wanted me to cut ribbon-NO!".
The short visit by Trump in February was not the full State Visit proposed by British Prime Minister Theresa May on the invitation of Queen Elizabeth II, for which no date has yet been set.
A petition calling for the invitation to be withdrawn was signed by more than 1.8 million people, while the issue was also debated in parliament.
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Downing Street said no date has been confirmed for any visit by Trump and that the opening of the US embassy "is a matter for the US".
However, Mayor of London Sadiq Khan - who has clashed with the president in the past - said the US president had "got the message" that many Londoners were staunchly opposed to his policies and actions.
Sections of the UK media claim that the visit was cancelled amid fears of mass protests as the embassy's plan to move from Mayfair to Nine Elms in London pre-dated the Barack Obama administration and was first reported in October 2008, when George W Bush was still the president.
On the embassy web page about the project, it said: "The project has been funded entirely by the proceeds of the sale of other US Government properties in London, not through appropriated funds".
Trump had also been scheduled to hold talks with prime minister May in No 10 Downing Street, with February 26 and 27 marked in the diary for the visit.
Downing Street had hoped to announce the dates this week.
Trump had responded by tweeting directly to the British PM that she should focus on tackling domestic terrorism.
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