The CAC 40 dropped 0.5% to close at 7,866 on Friday, ending a four-day rally, as escalating US–EU trade tensions and rising domestic inflation weighed on French stocks. President Trump’s unexpected announcement of a 35% tariff on Canadian imports, coupled with threats of broad 15–20% levies on other trading partners, stoked fears of retaliatory measures against European exports. At home, the latest price data showed June’s annual inflation rate climbing to 4.8%, a five-month high, raising doubts that the ECB will cut rates soon and hitting interest-sensitive sectors. LVMH, Herm