According to the White House, the president chose to cancel his plans because he was angry with the deal the Obama administration made to get the new embassy built, and is instead sending Secretary of State Rex Tillerson in his place.
Trump had been due to arrive in London for the new £750-million embassy's opening but is believed to have abandoned the idea as he feels unhappy about the visit's scale, the arrangements made, the lack of "bells and whistles" surrounding the event, and the fact he would not be able to meet Queen Elizabeth.
In addition to increased safety at the new embassy location in the Nine Elms district on the South Bank of the Thames, the building better accommodates its 1,000 employees, who occupied the old building that was only meant for 800, according to The Times.
But Sky News understands US Secretary of State Rex Tillerson will now undertake ceremonial duties at the official opening of the distinctive cube building.
The embassy, which is believed to be the most expensive in the world, has been funded purely from selling USA government properties in London.
"Let's hope that Donald Trump also revisits the pursuit of his divisive agenda". May's invitation for Trump to visit the Queen has faced growing opposition, fueled in part by the president's Twitter criticism of London Mayor Sadiq Khan and retweets of propaganda from a far-right British anti-Muslim group.
A spokesperson for the prime minister said on Friday morning that the decision to cancel Trump's visit was "a matter for the U.S.".
The White House said in the same month it would announce details "soon" of Mr Trump's proposed visit.
"The US is the biggest single investor in the United Kingdom - yet Khan & Corbyn seem determined to put this crucial relationship at risk", Johnson said in a tweet.
The US Embassy said the overall cost of the project was approximately one billion US dollars, while the president said it was slightly higher at 1.2 billion.