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TSX ends down 0.4% at 24,968.49

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For the week, the index adds 1.7%

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Materials group falls 1% as gold retreats

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Canada cancels capital gains tax hike

(Updates at market close)

By Fergal Smith

March 21 (Reuters) - Canada's main stock index gave back

some of its weekly gains on Friday, including declines for

mining and industrial shares, as the focus returned to U.S.

tariff uncertainty after some recent policy decisions from a

number of major central banks.

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

ended down 91.75 points, or 0.4%, at 24,968.49. For the week,

the index was up 1.7%, its biggest weekly gain since November.

U.S. stocks clawed back losses to end slightly higher after

comments from U.S. President Donald Trump provided hope that

previously announced tariffs expected to begin in early April

may not be as onerous as feared.

U.S. tariffs on steel and aluminum have already been raised.

Canada is a major producer of both.

"We are selectively adding to risk assets," said Joseph

Abramson, co-chief investment officer at Northland Wealth

Management, adding that the firm particularly likes U.S. banks,

which could benefit from a domestic focus and U.S. financial

deregulation, but is more hesitant about jumping into Canadian

stocks.

"We are still very much in a policy-driven market and that

is particularly true for Canada because battling a trade war

with somebody much bigger than you is difficult when you're in a

weak bargaining position," Abramson said.

The Federal Reserve left interest rates on hold on Wednesday

but policymakers indicated they still anticipate reducing

borrowing costs this year.

The materials group, which includes metal mining shares,

fell 1% as the price of gold pulled back from a record

high.

Consumer discretionary lost 0.8% as data showed Canadian

retail sales falling 0.6% in January and likely declining a

further 0.4% in February. Industrials ended 1% lower.

Technology helped limit the TSX's decline, adding 0.7%.

Canada will cancel a proposed hike in the capital gains

inclusion rate, ending an increase in the tax on investment

profits that had been widely criticized by industry.