April 9 (Reuters) - Futures tied to Canada's main stock

index fell sharply on Wednesday, after China announced

additional tariffs on U.S. goods in retaliation after President

Donald Trump's reciprocal tariffs took effect, intensifying

fears of a global economic fallout.

The futures on the S&P/TSX index were down 1.2% at

7:12 a.m. ET (1112 GMT).

Hopes of concessions faded after a massive 104% duty on

Chinese goods came into force, while the European Union prepared

retaliatory measures, leaving investors increasingly wary of

risk assets.

China's finance ministry said it will impose 84% tariffs on

U.S. goods from Thursday, up from the 34% previously announced.

U.S. Treasuries, the bedrock of the global financial system,

were hit by fresh selling pressure, as investors rushed to

liquidate even their most secure holdings in a bid for cash.

Meanwhile, shares of Canadian gold miners found support from

higher bullion prices, as traders sought the safe-haven asset

with a weaker dollar and the rising prospect of U.S. rate cuts.

Oil prices fell for a fifth day to their lowest since

February 2021, as the trade war and its potential impact on

global economic growth stoked worries over energy demand.

Copper prices dropped to an eight-month low in China as

higher U.S. tariffs reduced buying interest.

On the economic front, minutes from the Federal Reserve's

March policy meeting are due later in the day, while the U.S.

consumer price inflation report is set for Thursday, which could

offer more clues on the inflation trajectory in the world's

largest economy.

On Tuesday, Canada's main stock index fell to a near

eight-month low ahead of an expected escalation of the trade war

between the U.S. and China.

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