CANADA STOCKS-TSX gives up weekly gain as the US plays 'hardball' on tariffs

(Updates at market close)

By Twesha Dikshit and Fergal Smith

July 11 (Reuters) - Canada's main stock index pulled back on Friday from a record high as investors weighed the prospect of increased U.S. tariffs on Canadian goods and after domestic jobs data clipped expectations the Bank of Canada would resume its easing campaign.

The S&P/TSX composite index ended down 59.05 points, or 0.22%, at 27,023.25, after notching a record closing high on Thursday. For the week, the index was barely changed, posting a decline of 0.05%. U.S. President Donald Trump ramped up his tariff assault on Canada on Thursday, saying the U.S. would impose a 35% tariff on imports next month, up from the current 25% rate. An exclusion for goods covered by the United States-Mexico-Canada Agreement on trade was expected to stay in place.

"Clearly, the U.S. is pushing for more concessions," said Ian Chong, a portfolio manager at First Avenue Investment Counsel. "They're playing a little bit of hardball here, so not good for Canada and the TSX." The Canadian economy added 83,100 jobs in June and the unemployment rate surprisingly dipped to a level of 6.9% from 7% in May. Money markets see a 13% chance the BoC cuts its benchmark interest rate at the next policy decision on July 30, down from 27% before the jobs data.

The technology sector fell 1.6%, with shares of software company Open Text Corp (OTEX) down 4.0%.

Consumer staples lost 0.9% and heavily weighted financials ended 0.6% lower.

Four of the 10 major sectors ended higher. Energy added 1.2% as the price of oil settled up 2.8% at $68.45 a barrel.

The price of gold also rose, climbing 1%. The materials group, which includes metal mining shares, gained 0.9%.

Aritzia Inc (ATZAF) reported first-quarter results that beat expectations. Shares of the fashion retailer ended 1.5% higher. (Reporting by Fergal Smith, Twesha Dikshit and Sukriti Gupta; Editing by Shreya Biswas and Leroy Leo)