Mayor of London Sadiq Khan welcomed the news of the cancelled visit, adding it was clear that Trump had "got the message" that he was not welcome in the UK.
However, plans for the move and the updates £750m ($1bn) home at Nine Elms site, near Battersea were in fact initiated by the George W Bush administration.
He was reportedly due to meet Prime Minister Theresa May at No. 10 Downing Street, with February 26 and 27 provisionally scheduled in the presidential diary. "But maybe Sadiq Khan, Jeremy Corbyn and the Labour Party planning mass protests, maybe those optics he didn't like the look of". May proclaimed the strength of the "most special relationship" between the two countries and the government extended an invitation for a state visit as a guest of Queen Elizabeth II.
The president had been expected to open the new U.S. embassy in London.
However, Foreign Secretary Boris Johnson accused Mr Khan and Labour leader Jeremy Corbyn of putting the UK's "crucial relationship" with the U.S. at risk by opposing the visit.
Russian Federation says militants used drones to attack its bases in Syria -agencies
Syrian air defences intercepted one rocket, but several more hit "near a military position, causing material damage", it added. The rebel groups responded to the Russian escalation with attacks on Russian targets in Syria , including Khmeimim air base .
US diplomats are expected to move in to the new quarters this month. The building was sold in 2009 to a Qatari government investment fund, which plans to turn it into a hotel.
Trump had been set to cut the ribbon on the new £750m United States embassy in the capital in his first visit to Britain since being elected a year ago.
Local Labour MP Marsha De Cordova told Sky News she was "pleased" Mr Trump would not be travelling to the United Kingdom because he was "really scared" of being met by a peaceful protest made up of hundreds of thousands of people.
Mr Trump accepted the Queen's invitation for an official state visit when the prime minister met him a year ago.
He announced the decision in a midnight tweet amid reports in Britain that a Trump visit would be met with protests.
It seems unlikely that fury at the embassy move alone was enough to deter Trump, who has visited Britain often to inspect his Aberdeenshire hotel and golf course.
The controversy sparked a diplomatic spat between Theresa May and Mr Trump, after the Prime Minister condemned the US President's actions.