(Updates with morning prices)

By Twesha Dikshit and Sukriti Gupta

July 16 (Reuters) - Canada's benchmark index inched

lower on Wednesday, dragged by heavyweight energy and mining

shares, while investors assessed tariff-related updates and key

U.S. inflation data.

The S&P/TSX composite index was down 0.1% at

27,027.81 points.

U.S. President Donald Trump announced a 19% tariff on

Indonesian goods as part of a new deal, ahead of an August 1

deadline for broader tariff hikes.

Canada is open to

considering

limits on softwood lumber exports to the U.S. to try to

ease some trade friction, British Columbia Premier David Eby

told Bloomberg News on Wednesday.

"A lot of the conversations that a lot of people are having

right now is let's not be overly complacent about tariffs or at

the end of the day, it will have a real world impact eventually

and so it's best to prepare for it," said Jay Bala, co-founder

and CEO at AIP Asset Management.

In the U.S., producer prices held steady in June, defying

expectations as higher costs for tariff-hit goods were offset by

a slump in services.

On Tuesday, data showed Canada's annual inflation rose to

1.9% in June from 1.7% in May.

On TSX, mining shares fell 0.5%. Energy

stocks fell 0.8%, tracking a fall in oil prices with Baytex

Energy ( BTE ) down 1.7%.

Conversely, consumer staples added 0.4%,

while real estate and financials advanced

over 0.2% each.

Among individual stocks, Canadian gold and copper miner Aura

Minerals' ( ORAAF ) shares were down 3.8%, a day after saying it

plans to raise about $196.4 million from its U.S. initial public

offering.

Equinox Gold Corp ( EQX ) rose 2.1% after brokerage TD

Cowen upgraded the company's rating. Lundin Gold ( LUGDF ) fell

4% after TD Cowen cut its rating.

Cogeco Communications ( CGEAF ) lost 3.9% after the

telecommunications company reported quarterly results below

expectations.