(Updates with morning prices)

By Sanchayaita Roy

April 10 (Reuters) - Canada's main stock index fell on

Thursday, in broad-based declines, coming off the previous

session's rally spurred by U.S. President Donald Trump's

temporary tariff relief.

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

was down 2.5% at 23,134.8 points.

Trump on Wednesday suspended most of the hefty tariffs for

90-days, providing relief to rattled global markets that led TSX

to notch its biggest single-day gain in five years.

"We are probably getting some profit-taking because

there were some huge trading profits made by people yesterday",

said Colin Cieszynski, chief market strategist at SIA Wealth

Management.

However, Trump simultaneously escalated the trade

conflict by raising tariffs on Chinese imports to 125% from

104%, which had only taken effect on Wednesday.

The tariff pause will not apply to duties paid by Canada

and Mexico, because their goods are still subject to 25%

fentanyl-related tariffs if they do not comply with the

U.S.-Mexico-Canada trade agreement's rules of origin.

On TSX, energy stocks led the declines, down

5.7%, after oil prices retreated by more than 3%, amid fears of

a deepening U.S.-China trade war.

Information technology fell 4.7%, with shares

of e-commerce company Shopify ( SHOP ) slipping 7%.

Bucking the trend, materials gained 1.7% as

gold prices rose more than 1%, extending the previous session's

sharp rise on safe-haven demand.

On the data front, U.S. consumer prices unexpectedly fell

0.1% in March, in line with estimates, but inflation risks

remain high as Trump's increased tariffs on Chinese goods,

escalated the high-stake trade war between the two major global

economies.

Looking ahead, the U.S. earnings season could offer

insights into the health of corporate America.

"Tomorrow, earnings season starts with big banks in the

United States and everybody's going to be looking for that, what

our companies thinking about the economy" Cieszynski added.