"It appears that President Trump 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", Khan said in a statement.
"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.
He blamed President Barack Obama's administration for selling the old site for "peanuts" and building the new embassy in an "off location". Teams surveyed more than 50 sites before settling on the area of Vauxhall, south of the river Thames, for the new location, according to the statement.
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 study said that in a no-deal scenario, the industry that fares the worst will be financial and professional services, with as many as 119,000 fewer jobs nationwide.
London Mayor Sadiq Khan said Friday that US President Donald Trump had "got the message" from Londoners after canceling his visit to the city.
He was scheduled to visit the British capital next month to open the new facility.
AP FACT CHECK: Trump claims London embassy is a 'bad deal'
Mr Johnson told MPs: "I think Her Majesty the Queen is well capable to of taking this American president - or indeed any American president - in her stride, as she has done over six remarkable decades".
A Trump visit has been on the cards since British Prime Minister Theresa May visited the United States a few days after Trump's inauguration past year.
Khan noted Trump's cancellation "reinforces what a mistake it was for Theresa May to rush and extend an invitation of a state visit in the first place". The idea had gradually evolved into a working visit in which Trump would open the London embassy. "He's scared at the hundreds of thousands of people that will be here, peacefully protesting against his visit because of his racist and his misogynistic views", said Labour MP Marsha de Cordova. In December, Johnson said he was looking forward to welcoming the president.
The snub, reported by the Daily Mail, would be the second blow to Mr Trump and the UK's relationship.
Donald Trump can't make it to London so Madame Tussaud's museum has set up a waxwork Trump outside the United States embassy in Battersea.
But Johnson accused Khan and Labour leader Jeremy Corbyn of damaging U.S. -Britain relations with their vocal criticism.
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