(Updates with market moves, adds analyst quotes)

By Sanchayaita Roy

Aug 1 (Reuters) - Canada's main stock index slipped on

Friday as investors assessed U.S. President Donald Trump's new

tariff regime that included levies on Canada and dozens of other

countries.

The S&P/TSX composite index was down 1.4% at

27,878.91 points, posting its biggest percentage decline in

nearly four months.

The index is set to snap a two-week winning streak.

Trump late on Thursday signed an executive order increasing

tariffs on all Canadian goods not covered by the

U.S.-Mexico-Canada trade agreement to 35% from 25%.

He also imposed duties ranging from 10% to 41% on imports

from countries including Brazil, India and Taiwan.

"President Trump has always been for negotiation...Canada

will get a deal done but at what cost that's the question," said

Allan Small, senior investment advisor at Allan Small Financial

Group with iA Private Wealth.

"The good news is most of the things that we send to the

U.S. fall under the USMCA. But we're hearing that Trump wants to

negotiate that agreement in 2026...that will be a much greater

ramification."

Healthcare stocks fell 1.7%, tracking losses in

U.S. and European peers after Trump sent letters to the leaders

of 17 major pharmaceutical firms, outlining how they should cut

U.S. prescription drug prices to match those paid overseas.

Technology shares led the broader sectoral decline

with a 3.3% fall, after tech giant Amazon's ( AMZN ) results

disappointed investors.

Energy stocks fell 2.6%, tracking lower oil

prices.

Among individual stocks, Imperial Oil ( IMO ) posted a fall

in second-quarter profit, sending its shares down 1.8%.

NFI Group ( NFYEF ) slipped 4.6% after the bus and coach

manufacturer missed second-quarter revenue estimates.

Data showed that U.S. job growth slowed more than expected

in July, while the prior month's data was revised sharply lower,

pointing to a steep moderation in the labor market.

Meanwhile, Canada's manufacturing sector contracted for a

sixth straight month in July, hit by tariffs.