It was supposed to be a match made in fashion heaven: famed New York jeweller Tiffany & Co. and the French luxury group LVMH getting together.

Now LVMH says it won't be going ahead with its $16 billion agreement to buy Tiffany, signed last November.

LVMH says that's because the French government asked them to delay the closing of the deal.

There's a trade spat between France and the U.S., and Washington has threatened tariffs on French goods.

Not losing any time, Tiffany's suing the company controlled by French billionaire Bernard Arnault to keep the agreement in place.

Tiffany was counting on the sale especially as the coronavirus pandemic has hit its business hard.

Tiffany's flagship stores are in major cities where tourists flocked to buy high-priced baubles, but travelers are few and far between this year. 

And there's no sign tourists will be able to return soon.

Speculation is that LVMH is hoping to add a jewel to its portfolio at a lower price.

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