Luxury goods giant LVMH is ending its takeover deal of luxury jewellery retailer Tiffany & Co., citing in part the threat of proposed U.S. tariffs on French goods.

The Paris-based conglomerate said that it needs more time to assess the impact of the possible U.S. tariffs on French goods and cannot close the deal before year-end.

The USD 14.5 billion deal was scheduled to close November 24.

Tiffany replied that it's suing to enforce the merger agreement, which was signed in November 2019. The New York company said LVMH's argument has no basis in French law.

Tiffany also said that LVMH hasn't even attempted to seek antitrust approval from three jurisdictions.