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Indexes: Dow down 0.68%, S&P 500 down 0.27%, Nasdaq up

0.01%

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Levi Strauss gains after hiking forecasts

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Trump slaps 35% tariffs on Canada

(Updates with early afternoon prices)

By Pranav Kashyap and Nikhil Sharma

July 11 (Reuters) - The S&P 500 and the Dow fell on

Friday and were headed for a downbeat week as President Donald

Trump ramped up his tariff offensive against Canada, amplifying

the uncertainty swirling around the U.S. trade policy.

Trump on Thursday announced a 35% tariff on Canadian

imports, set to kick in next month, up from the 25% imposed in

March, and warned that the levy could climb higher if Canada

retaliates.

The president also floated the possibility of a sweeping 15%

or 20% tariff on other countries, up from the current 10%

baseline.

Caution also prevailed as the European Union braced for a

possible formal letter from Trump, with details on fresh

tariffs.

At 11:47 a.m., the Dow Jones Industrial Average fell

0.68%, while the S&P 500 lost 0.27%.

Eight of 11 sectors on the S&P 500 traded in the red, led by

the materials index that dropped 1.3%.

The S&P 500 and the tech-heavy Nasdaq were on course to

close the week in the red, while the Dow looked set to end its

three-week winning streak - the longest stretch since January -

and braced for its steepest weekly drop in over a month.

Markets this week remained mostly subdued. The only upside

was Nvidia shattering all records to become the first company to

top a $4 trillion valuation.

Its shares hit a fresh record high on the day, helping the

tech-heavy Nasdaq stay out of the red. The index held

steady at 20,633.38 points.

This week, Trump expanded his tariff campaign, taking aim at

a wider range of countries - including allies such as Japan and

South Korea - and slapping a 50% tariff on copper.

Yet, the market response to this latest salvo was a far cry

from the turmoil seen after April's "Liberation Day" tariff

announcements, which triggered the sharpest weekly losses for

major indexes in nearly six years.

Analysts are noting a growing sense of resilience among

investors, who seem to be getting used to Trump's tariff

threats.

Investors are, however, on now guard for the upcoming

earnings season, which they expect to provide fresh insight into

how trade tensions are reverberating across corporate America.

"We believe expectations are a bit low for S&P 500 earnings.

Much of the second quarter was marked with tariff and trade

issues and that may have caused some dislocations in earnings,"

said Michael Landsberg, chief investment officer, Landsberg

Bennett Private Wealth Management.

Denim maker Levi Strauss & Co ( LEVI ) jumped 10.9% after

the company raised its annual revenue and profit forecasts and

beat quarterly estimates.

Meta Platforms ( META ) fell 1.2%. A report said the company

was unlikely to make more changes to its pay-or-consent model,

potentially inviting fresh EU antitrust charges and hefty daily

fines.

Declining issues outnumbered advancers by a 2.82-to-1 ratio

on the NYSE, and by a 2.5-to-1 ratio on the Nasdaq.

The S&P 500 posted nine new 52-week highs and four new lows,

while the Nasdaq Composite recorded 42 new highs and 33 new

lows.