(Updates at market close)

By Fergal Smith

April 8 (Reuters) - Canada's main stock index gave back

its earlier gains to hit a near eight-month low on Tuesday, as

energy and consumer discretionary shares led broad-based

declines ahead of an expected escalation of the trade war

between the United States and China.

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

ended down 352.56 points, or 1.5%, at 22,506.90, its fourth

straight day of steep declines after the U.S. unveiled a

sweeping regime of trade tariffs that spooked investors

globally. It posted its lowest closing level since August 12.

The United States said that 104% duties on imports from

China will take effect shortly after midnight, even as the Trump

administration moved to quickly start talks with other trading

partners targeted by President Donald Trump's sweeping tariff

plan.

"The U.S. and China are butting heads," said Elvis Picardo,

a portfolio manager at Luft Financial, iA Private Wealth. "As

two of the biggest economies in the world, the collateral damage

from something like that if it continues for a while could be

significant."

The energy sector fell 4.8% as the price of oil extended its

recent declines, settling 1.1% lower at $59.58 a barrel.

"The recession odds in the U.S. have spiked up since the

(stock market) selloff," Picardo said. "If the U.S. goes into a

recession, it's unlikely the rest of the world escapes that

scenario and obviously you see energy demand fall on the back of

that."

CEOs of Canadian oil and gas producers said they are seeking

to avoid making abrupt decisions after the recent rout in oil

prices.

All ten major sectors on the TSX lost ground, with consumer

discretionary down 2.5% and industrials ending 1.4% lower.

Shares of Tilray Brands inc tumbled nearly 21%

after the cannabis firm reported third-quarter revenue that fell

short of analysts' estimates.

The health care sector, which includes Tilray Brands, was

down 8.5%.