"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 president tweeted on Thursday.
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.
But the Foreign Secretary took to Twitter to condemn Mr Khan and his party leader, saying: "The US is the biggest single investor in the United Kingdom yet Khan & Corbyn seem determined to put this crucial relationship at risk".
"President Trump got the message from the many Londoners who love and admire America and Americans but find his policies and action the polar opposite of our city's values", Khan said in a statement released on Twitter.
Just south of the River Thames, the cube-shaped embassy building is in sight of Westminster and part of a £15 billion, 561-acre regeneration project set to transform one of the South Bank's last remaining industrial stretches.
In 2009, the Obama State Department agreed to sell the Grosvenor Square building where the USA embassy was located to the Qatar royal family.
The clarification comes after Trump said he had cancelled his trip to London next month to officially open the new U.S. embassy in protest over its new location south of the River Thames, and the sale of the old building, in the upmarket Mayfair district.
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"Security concerns after September 11 meant we had to move to a location that could better protect American citizens and our British neighbors", he wrote in an article for London's Evening Standard newspaper.
Yet on Friday the United States embassy in London joined British officials in rebutting his claims.
Trump's statement further irritated London as many people and government officials asked May to withdraw her invitation to Trump to pay a state visit.
The White House said it will announce details "soon" of Trump's proposed visit to the UK.
While a working visit, would include a meeting with May and other diplomatic formalities like opening the embassy. 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". Johnson said in a tweet.
SOT: JEREMY SHAPIRO, RESEARCH DIRECTOR AT THE EUROPEAN COUNCIL ON FOREIGN RELATIONS (ENGLISH): Jeremy Shapiro of the European Council on Foreign Relations cautioned against trying to make sense of Trump's decision to postpone his trip. We will not allow US-UK relations to be endangered by some puffed up...