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.
Meanwhile, there was some criticism of Mr Trump describing the new location of the USA embassy as "off-location"; its current home is in the heart of the West End in Grosvenor Square and is being moved to improve security.
The decision to move the embassy from its historic location in London's Grosvenor Square was made under President George W. Bush and announced in October 2008.
A United Kingdom official said on Friday the invitation to Trump for a state visit, first extended by British Prime Minister Theresa May during her visit to the USA early in Trump's presidency, still stands: "The invitation for a State Visit has been extended and accepted", the official said.
British Prime Minister Theresa May's Spokesperson Max Blain said Vauxhall is a vibrant part of London and "home to many businesses", and not an "off location" as Trump had described.
Despite the row, USA ambassador Woody Johnson recently outlined his expectation Mr Trump would visit the United Kingdom early in 2018, as he expressed his hopes the President would open the new London embassy.
Mr Trump's decision not to visit was welcomed by critics outraged by the U.S. travel ban on some Muslim-majority countries, and more recently, his decision to re-tweet anti-Muslim videos posted by a British far-right organisation.
"Reason I canceled my trip to London is that I am not a big fan of the Obama Administration having sold perhaps the best located and finest embassy in London for 'peanuts, ' only to build a new one in an off location for 1.2 billion dollars". 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.
The exchange prompted further calls to dump the visit. That message was echoed by David Lammy, a lawmaker for the opposition Labour Party, who believed Trump was shaken by the prospect of being "met by millions of us out on the streets protesting".
Some British lawmakers questioned whether Trump would be welcome in London because of previous tweets and criticism of Muslims and his sniping at London Mayor Sadiq Khan in the aftermath of a terror attack in that city past year.
His comments sparked criticism from Foreign Secretary Boris Johnson, who accused the Mayor of London of endangering the so-called "special relationship". "We will not allow US-UK relations to be endangered by some puffed up pompous popinjay in City Hall".