(Updates with morning prices)

By Sanchayaita Roy and Sukriti Gupta

May 6 (Reuters) - Canada's main stock index was flat in

choppy trading on Tuesday, as U.S. President Donald Trump's

latest tariff plans dampened investor sentiment ahead of the

Federal Reserve's monetary policy decision meeting.

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

was trading unchanged at 24,957.06 points.

Late on Monday, Trump said he plans to announce

pharmaceutical tariffs over the next two weeks, adding to the

levies rhetoric that has unsettled global financial markets in

recent months.

The development follows Trump's announcement on Sunday about

imposing tariffs on foreign-made movies.

"A lot of the ebbs and flows in the market these days is

still dependent on the tariff rhetoric but at some point over

the next few months, we're going to see how much damage has

actually been caused by tariffs or the uncertainty around it,"

said Josh Sheluk, portfolio manager at Verecan Capital

Management.

Later on Tuesday, Canadian Prime Minister Mark Carney is set

to meet Trump in the Oval Office to reset a bilateral

relationship he says has been undermined by the U.S. president's

tariffs and talk of annexation.

On TSX, energy-related stocks rose 1.5% after oil

gained more than $1 per barrel.

Materials rose 1.2% after gold prices rose to a

two-week high.

But information and technology stocks were down

1%.

Canadian economic activity contracted in April as employment

declined for a second straight month, Ivey Purchasing Managers

Index (PMI) data showed on Tuesday.

Canada's trade deficit narrowed to C$506 million ($366.34

million) in March, beating expectations as imports fell at a

faster rate than the drop in exports.

Looking ahead, investors will monitor the Fed's two-day

meeting scheduled to start later in the day for hints of

potential monetary policy easing this year.