President Trump is welcome in London - May's spokesman

Donald Trump and Theresa May

Donald Trump and Theresa May

The American leader has now said he does not want to inaugurate the new USA embassy because it was a "bad deal" signed by the previous administration under Barack Obama.

President Donald Trump said Thursday that he has canceled a trip to London, in a tweet that blamed his predecessor for selling the previous U.S. Embassy in that city for "peanuts".

It was, in fact, the Bush administration who signed the deal in 2008-a month before Obama's election-to relocate the U.S. Embassy to the Nine Elms location in Wandsworth, London.

Liberal Democrat Foreign Affairs spokesperson Jo Swinson also criticized Trump for cancelling his plan to visit the United Kingdom, but directed part of her remark toward British Prime Minister Theresa May for not going one-upmanship on the president by announcing the decision first.

The new U.S. Embassy in London will open Tuesday, and, at a cost of about $1 billion, it is the most expensive structure of its kind ever built.

There was an outburst on social media after the visit was announced past year, when protesters vowed to turn out in great numbers to let the US President know that he was not welcome in the UK.

Trump's ambassador to London, Woody Johnson, subsequently insisted: "The president and the prime minister have a very, very good relationship".

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The embassy is moving from Grosvenor Square in the well-heeled Mayfair neighborhood of central London, where it has been since 1938, to Nine Elms, a former industrial area on the southern bank of the River Thames.

The problem with that rationale is that Trump's tweet misrepresented the history of the U.S. Embassy move.

He was due to visit London in February for the opening of the new building.

Theresa May invited Trump for a state visit when she became the first world leader to visit the president in the White House a year ago.

But many commentators believe Trump was instead put off by the prospect of significant protests during his visit with the potential for disruption, negative publicity and embarrassment as the real reason for his continuing avoidance of the UK.

Mr Trump has also been offered a full-blown state visit to Britain but no date has been set amid jitters over protests.

The spat exploded when Trump called out May on Twitter because she gave a statement about his having shared right wing Islamophobic videos from Britain First.

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