What happened and why Forced to sip a stiff jar at the breakfast bar, jewellery-icon, Tiffany's (-11.24%), was stood-up by LVMH (-1.38%), after the French luxury giant pulled-the-rug on the $16.2bn deal to bring the two lux-giants together. LVMH, who owns Louis Vuitton, Dom Perignon, Moet (and a bunch of other stuff that you can't afford), had committed the industry's biggest every luxury deal. He said, she said... Last year... LVMH & Tiffany's signed on the dotted-line for a mega-merger that had to be confirmed by 24th November 2020.The French government gave LVMH the heads up that American tariffs' would be landing soon and suggested pushing the deal back.Then yesterday... LVMH told Tiffany that the deal was dust after the French government blocked the deal. 🍾 Luxury Muscles... Trump has been flexing American muscle across the globe and France has been no exception. After France laid taxes on American tech giant, America threatened with tariffs on luxury French goods. And that filled the excuse jar nicely for LVMH, who suggested the impending (or not so impending) tariffs could hit sales and that the $16bn suddenly looked a little steep. | The Takeaway While tariffs are uncertain, the damage and dent caused to valuations by the pandemic are clear as day. With Tiffany's covid sales plunging by -30% in a wedding-absent period, LVMH were praying for excuse and the French government just so happened to serve up a suspiciously convenient one.