The CAC 40 index dropped 0.7% to around 7,778 on Monday, extending Friday’s losses amid renewed trade war fears tied to U.S. tariffs on the EU and Mexico. Over the weekend, President Trump threatened to impose a 30% tariff on imports from both regions starting August 1, following stalled negotiations with major US trading partners. In response, the EU said Sunday it would extend its suspension of countermeasures until early August while continuing to push for a negotiated settlement. Still, the European Commission emphasized its readiness to defend the bloc’s interests if talks fail. EU trade ministers are meeting today to discuss the appropriate response. On the corporate front, Hermes (-2.1%), LVMH (-0.8%), Airbus SE (-1%), and Schneider Electric (-0.9%) led losses, while defense stocks gain, led by Thales (1.1%), after French President Macron announced €6.5 billion in additional military spending over the next two years.