(Updates with morning prices)

By Sanchayaita Roy

March 27 (Reuters) - Canada's main stock index struggled

for direction on Thursday, a day after U.S. President Donald

Trump's announcement of tariffs on auto imports intensified the

global trade war.

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

was down 0.04% at 25,151.30.

In a late-night announcement on Wednesday, Trump unveiled

his plan to implement 25% tariffs on imported cars and light

trucks effective on April 3, the day after he plans to announce

reciprocal tariffs aimed at the countries he blames for the bulk

of the U.S. trade deficit.

Earlier this week, investor sentiment had slightly improved

after Trump indicated that not all of his threatened reciprocal

levies would be imposed on April 2 and that some countries may

get breaks.

"The short term trading today is completely tied to the

announcements and expectations of the tariffs," said Colin

White, president and chief executive officer at Verecan Capital

Management.

"But additional announcements from either the U.S.

administration or any other administration are going to be very

closely scrutinized."

On TSX, information technology fell for the second

straight session, down 1%, the most among all sectors.

Blockchain farm operator Bitfarms ( BITF ) dropped about

1%, after it reported its fourth-quarter results and bitcoin

fell 1.1%.

Consumer discretionery fell 0.6%; Magna

International ( MGA ) declined the most, down 7%.

Keeping losses in check, materials gained 1.5%,

tracking higher gold prices that scaled a record peak, as

investors fled to safe-haven assets after Trump's new tariff

announcement.

"Precious metals and energy ... have been very positive for

maintaining the overall market value of the Canadian market",

White said.

Domestic investors are awaiting Canada's January GDP figures

and the U.S. Federal Reserve's preferred inflation measure, the

Personal Consumption Expenditure (PCE) data, that are set to be

released on Friday.