(Updates with morning prices)

By Twesha Dikshit and Sukriti Gupta

July 11 (Reuters) -

Toronto's benchmark index fell on Friday as U.S. President

Donald Trump ramped up his tariff assault on Canada, while

investors assessed better-than-expected domestic employment data

for June.

The S&P/TSX composite index dipped 0.3% at

26,999.13 points and was on track to snap its two-week winning

streak.

Trump late on Thursday issued a letter implementing a 35%

tariff rate on imports from Canada from August 1, adding that

the rate would go up if Canada retaliated. The new tariff is an

increase from the current 25% rate that Trump had assigned to

Canada.

"Clearly, the U.S. is pushing for more concessions. They're

playing a little bit of hardball here, so not good for Canada

and the TSX," said Ian Chong, portfolio manager at First Avenue

Investment Counsel.

Prime Minister Mark Carney said his government will defend

Canadian workers and businesses in their negotiations with the

U.S.

An exclusion for goods covered by the U.S.-Mexico-Canada

Agreement was expected to stay in place, while 10% tariffs on

energy and fertilizer were not set to change, though Trump had

not made a final decision, an administration official said.

Meanwhile, domestic jobs data showed that Canada's

unemployment rate dropped in June with the first net increase in

jobs since January. The data is widely expected to tilt the Bank

of Canada towards another hold on its policy rate.

Industrial stocks fell 0.6%, while financials

declined 0.8%.

Conversely, energy stocks added 0.6%, tracking a

rise in oil prices. Mining shares were up 0.2%, as

gold prices rose.

Gold miners Aya Gold & Silver ( AYASF ) rose 4.5% and Equinox

Gold Corp ( EQX ) advanced 2.3%.

Copper prices slipped, and with it, dragged miners Hudbay

Minerals ( HBM ) and Capstone Copper ( CSCCF ) down 3% and 2.5%

respectively.

On Thursday, Hudbay said it had temporarily suspended its

Snow Lake operations due to a wildfire in Northern Manitoba.

Meanwhile, Aritzia ( ATZAF ) added 1.6% after the fashion

retailer's first-quarter results beat expectations.

MTY Food Group ( MTYFF ) shares dropped 8.6% after the

company's second-quarter adjusted earnings per share missed

analyst estimates.