(Updates with morning prices)

By Sanchayaita Roy

May 30 (Reuters) - Canada's main stock index slipped on

Friday, as trade worries over U.S. President Donald Trump's

accusation in a social media post of China violating a tariff

agreement offset positive sentiments about domestic economic

growth.

"China, perhaps not surprisingly to some, HAS TOTALLY

VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE

GUY!," Trump said on his Truth Social platform.

The Toronto Stock Exchange's S&P/TSX composite index

was down 0.3% at 26,133.45 points. However, for the

week, the index was up 1.2%.

Global equities had initially rallied in the previous

session, after the Court of International Trade ruled late on

Wednesday to effectively block most levies imposed since

January.

However, a U.S. federal appeals court temporarily reinstated

Trump's tariffs on Thursday, to consider the government's

appeal.

"People who were expecting to see some clarity in the market

are going to be somewhat disappointed", said Michael Sprung,

president at Sprung Investment Management.

"When Trump says China has violated any sort of agreement

the whole premise might be that he might do something

retaliatory, which is going to be inflationary and harmful."

Data showed, Canada's economy grew faster than expected in

the first quarter. But an increase in imports that led to

inventory build-up, lower household spending and weaker final

domestic demand showed that the economy was battling on the

domestic front. Economists have warned that as tariffs continue

on Canada, this trend will persist.

This comes ahead of the Bank of Canada's rates decision next

week. The market sees a 22% chance of a rate cut next week, down

from 27% before GDP data.

The TSX has gained 5.4% so far in May and was set for its

best month in six, boosted by investor optimism on easing of the

global trade war earlier this month.

South of the border, U.S. consumer spending increased

marginally in April as a rush to beat higher prices from import

duties slowed.

On TSX, energy subindex fell 1.3% as oil prices

headed for a second consecutive weekly loss.

Healthcare stocks fell 1.7%.