Now, it is expected that President Trump would make a brief, working visit next month to London to inaugurate the new U.S. embassy located in south-west London.
He cited the fact the Obama administration had opted to re-locate the embassy from its current location in Mayfair to a purpose-built £750 million facility south of the Thames as the reason for scrapping his trip, adding the move was a "bad deal".
According to the State Department, it was the administration of President George W. Bush - not Obama - that made a decision to build a new embassy in 2006 and chose the new location in 2008.
After Trump's cancelation tweet, London Mayor Sadiq Khan tweeted that Trump is "not welcome here while he is pursuing such a divisive agenda".
Relations between London and Washington were also put under the spotlight a year ago after Mr Trump moved to recognise Jerusalem as Israel's capital. "We are really pleased to have the American embassy there, it's fit for goal".
The Foreign Secretary said people who welcomed news the United States leader would not visit Britain were "determined to put" a "crucial relationship at risk".
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.
However, Tory MP Tom Tugendhat, Chairman of the Commons Foreign Affairs Select Committee, told Radio 4 that Mr. Trump's decision has nothing to do with the UK's relationship with the U.S.
Stand Up To Racism has called a demonstration outside the (current) U.S. embassy on 20 January.
While Trump blamed the embassy real estate deal for his decision not to visit the capital of one of the United States' closest allies, various reports indicate planned protests contributed to the decision.
However, Councillor Ravi Govindia, leader of Wandsworth Council and co-chair of the Nine Elms Vauxhall Partnership, has hit back saying: "If Nine Elms was off-location yesterday, it is certainly centre stage today".