"This just reinforces what a mistake it was for Theresa May to rush and extend an invitation of a state visit in the first place".
Mrs May controversially extended the offer of a state visit when she became the first world leader to meet Mr Trump in the White House following his inauguration previous year.
Many Londoners have made it clear that Donald Trump is not welcome here while he is pursuing such a divisive agenda.
He said: "It is an own goal for the United Kingdom if the threat of mass protests has prevented the President of our closest ally from attending an embassy opening".
He said the new embassy was a "signal to the world that this special relationship that we have is stronger and is going to grow and get better". "Bad deal. Wanted me to cut ribbon - NO!"
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Labour's Sadiq Khan welcomed the decision by claiming Trump "got the message".
Theresa May and Donald Trump's relationship was strained past year after she condemned him for sharing far-Right videos without verifying the claims contained in the footage, he hit back attacking her directly on Twitter.
May's spokesman told reporters Trump was welcome in London and that the invitation to visit had been accepted, although no date agreed.
Facebook groups organizing for Trump's planned February visit called for one of the largest protests Britain had ever seen.
He tweeted: "The US is the biggest single investor in the United Kingdom - yet Khan and Corbyn seem determined to put this crucial relationship at risk".
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He said it was due to concerns about the embassy's move from the elite Mayfair district to a less fashionable area of London. The sale was made because the British government wanted to list the building as one of historical importance, which would have made renovations and a potential sale more hard to do.
In December Ambassador Woody Johnson said he was looking forward to welcoming the president when he visited, adding: "I think he will be very impressed with this building and the people who occupy it".
However, Trump blamed former President Barack Obama for the sale, saying he would not attend the official opening of the new site.
There had always been security concerns about the Grosvenor Square site, dating back to the late 1990s after attacks on U.S. embassies in Africa.
The new embassy is a veritable fortress set back at least 30 meters from surrounding buildings - mostly newly erected high-rise residential blocks - and incorporating living quarters for US Marines permanently stationed inside.
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