Another Afghan soldier and a military prosecutor were wounded in the attack and three militants were killed at the scene.
The government delegation was visiting one of the two villages in Kandahar province where Sunday's shooting rampage took place. Two of Afghan President Hamid Karzai's brothers and several top security officials were in the delegation.
Afghanistan’s Taliban vowed to carry out retaliation attacks earlier this week.
The US soldier said to have carried out Sunday's attacks is under arrest and is being held at an undisclosed location.
's Bilal Sarwary in Kabul said that officials reported a 10-minute gun battle during which Taliban fighters fired from a distance at a mosque where the delegation and civilians were taking part in a prayer service.
A member of the delegation, Abdul Rahim Ayubi, told AP the governor was trying to explain to locals that the shooting was an isolated incident.
"But the people were just shouting and they were very angry. They didn't listen to the governor. They accused him of defending the Americans instead of defending the Kandahari people," Mr Ayubi said.
Anti-US sentiment is at an all time high in Afghanistan after soldiers burned some copies of the Koran at a Nato base in Kabul last month which sparked deadly riots across the country.
According to RT
, in a separate incident hundreds of Afghan university students have taken to the streets to protest the shooting spree that left 16 dead. The protesters demanded justice for the victims and a full withdrawal of US forces.
On Tuesday, around 400 students protested in Afghanistan’s eastern city of Jalalabad. The crowd blocked a highway leading to the country’s capital of Kabul and chanted anti-American slogans. They demanded a public trial for the shooter.
An effigy of US President Barack Obama was burned by the students who shouted “Death to America – Death to Obama.” Others carried banners including one saying "Jihad (holy war) is the only way to get the invading Americans out of Afghanistan."
US President Barack Obama said that the shooting was "absolutely heartbreaking and tragic", but said international forces must be withdrawn from Afghanistan in a responsible way and would not "rush for the exits".
He said international forces had to ensure Afghans could secure their borders and stop al-Qaeda from getting back into the country.
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