(Updated at 10:38 a.m. ET/ 1538 GMT)

By Ragini Mathur and Nikhil Sharma

Dec 12 (Reuters) - Canada's main stock index dropped to

a more-than-two-week low on Thursday, dragged by commodity

stocks, as investors grew nervous about the domestic economic

growth amid looming tariff threats by Donald Trump.

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

was down 209.55 points, or 0.82%, at 25,448.45, and

was trading at its lowest since Oct. 31.

At least nine sectors on the index nursed losses, led by the

commodity-focussed sectors, with materials falling

2.1%, tracking gold and copper prices.

The heavyweight energy also declined 2% as oil

prices decreased following forecasts of ample supply, which

offset the optimism around a potential U.S. interest rate cut.

The Canadian central bank slashed its key policy rate by 50

basis points on Wednesday to help boost the country's slower

growth.

"This is the fifth consecutive rate cut and another

super-sized cut as well" and "signals a weaker-than-expected

economy in Canada," said Shiraz Ahmed, senior portfolio manager

and founder of Sartorial Wealth at Raymond James.

"Adding to this are the ongoing tariff discussions," Ahmed

continued, which he said are among the factors that are

"creating a sense of unease in the markets".

Trump's tariff threats have raised fears of a trade war

between the U.S. and Canada, with the majority of Canadian oil

exports sent across the border.

Among individual stocks, Empire Company ( EMLAF ) jumped

7.6% to scale to an all-time high after the food and retail

distribution company surpassed estimates for second-quarter

profit.

Imperial Oil ( IMO ) fell 4.8% following its forecast of

higher crude production in 2025, as the Canadian energy major

expects to ramp up output from existing oil sands assets.

Stateside, producer prices rose more than anticipated in

November, while weekly jobless claims unexpectedly rose last

week.