A model of US President Donald Trump from the Madame Tussaud's waxwork attraction more than four miles away was placed outside the new embassy building, due to open for business on January 16, after the president's announcement.
"The US chancery in Grosvenor Square had aged beyond its ability to be improved to current security and life safety standards without extensive investment in infrastructure that would require appropriated dollars", he said.
The State Department, however, announced plans for relocating the London embassy in 2008, while George W. Bush was still president, because of concerns about security following the September 11 terror attacks.
U.S. President Donald Trump cancelled a trip to London scheduled for next month to open a new embassy, blaming Barack Obama for selling off the old one for "peanuts" in a bad deal.
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President Donald Trump was expected to visit London in February - and now that his trip has been put on hold, many are at odds as to why.
Just south of the River Thames, the cube-shaped embassy building is in sight of Westminster and part of a £15 billion, 561-acre regeneration project set to transform one of the South Bank's last remaining industrial stretches. The Daily Mail reported that Trump had backed out because he was unhappy about arrangements for the visit, which was billed as a "working" visit rather than a full state visit that could include a meeting with Queen Elizabeth.
"Security concerns after 11 September meant we had to move to a location that could better protect American citizens and our British neighbours", Johnson wrote.
MPs have repeatedly called for the offer of a state visit for the US President to be withdrawn following his crackdown on immigration from majority-Muslim countries and promotion of far-right group Britain First on Twitter.
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It does not mean plans for the US President's state visit to the United Kingdom are off entirely, with a Downing Street spokesman telling the newspaper: "An invitation for a state visit has been extended and accepted".
Trump's cancellation was met with humour on social media, with parodies of the president's tweet trending on Twitter.
The mayor of London - who has been criticized by Trump in tweets - said Trump appeared to have "got the message from the many Londoners who love and admire America and Americans but find his policies and actions the polar opposite of our city's values of inclusion, diversity and tolerance". Mr Khan, a member of the main opposition Labour Party, said there would have been "mass peaceful protests", and that it was a "mistake" to invite him.
His comments sparked criticism from Foreign Secretary Boris Johnson, who accused the Mayor of London of endangering the so-called "special relationship".
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"It seems he has finally got that message". We will not allow US-UK relations to be endangered by some puffed up...