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Indexes down: Dow 0.58%, S&P 500 0.42%, Nasdaq 0.20%

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Levi Strauss gains after hiking forecasts

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Trump slaps 35% tariffs on Canada

(Updates with market open prices)

By Pranav Kashyap and Nikhil Sharma

July 11 (Reuters) - Wall Street indexes declined on

Friday, as President Donald Trump cranked up his tariff assault

on Canada, deepening uncertainty around Washington's trade

agenda.

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 10:04 a.m., the Dow Jones Industrial Average fell

263.99 points, or 0.58%, to 44,390.90, the S&P 500 lost

26.77 points, or 0.42%, to 6,253.94, and the Nasdaq Composite

lost 42.03 points, or 0.20%, to 20,588.63.

All sub-indexes of the S&P 500 traded in the red, with

losses primarily led by financials and materials

, both down 1.1% each.

The S&P 500 and the tech-heavy Nasdaq are on

track to end the week slightly lower, and the Dow looks set to

snap its three-week winning streak - the longest since January.

Markets have remained largely subdued this week, with the

only highlight being Nvidia ( NVDA ) becoming the first company

to breach the $4 trillion valuation milestone. Its shares hit a

fresh record high on the day.

This week, President Trump widened his tariff offensive,

targeting a number of countries, including allies Japan and

South Korea, and introducing a new 50% tariff on copper.

Market reaction to the new tariff announcements was far less

choppier than the turbulence following early April's "Liberation

Day" announcements, when all the major indexes posted their

steepest weekly losses in nearly six years.

Investors are now gearing up for the upcoming earnings

season, hoping for a clearer read on how trade turmoil has

rippled through corporate America.

Wall Street's big banks are scheduled to report quarterly

results next week, with J.P. Morgan kicking off the

earnings season on Tuesday.

"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.

The coming week is also packed with economic data releases,

including consumer and producer price inflation and retail sales

readings.

Meanwhile, last week's robust jobs report has nearly dashed

all hopes for a July rate cut. Investors are now betting on a

September move -- odds for which stand at 60.6%, according to

CME FedWatch.

Denim maker Levi Strauss & Co ( LEVI ) jumped 10.2% after

the company raised its annual revenue and profit forecasts and

beat quarterly estimates on Thursday.

Meta Platforms ( META ) fell 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 3.47-to-1 ratio

on the NYSE, and by a 2.34-to-1 ratio on the Nasdaq.

The S&P 500 posted six new 52-week highs and one new low,

while the Nasdaq Composite recorded 27 new highs and 20 new

lows.