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US stocks lower in afternoon trading

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Canadian dollar dips after Trump announces tariffs

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Bitcoin hits record high, gold strong

(Updates to US afternoon trading)

By Caroline Valetkevitch and Chibuike Oguh

NEW YORK, July 11 (Reuters) - Major stock indexes were

slightly lower on Friday as U.S. President Donald Trump's

announcement of tariffs on imports from Canada fanned worries

about trade tensions, with the Canadian dollar down against the

greenback.

Investors are also bracing for an announcement from Trump of

tariffs on the European Union, a move that will likely trigger a

tit-for-tat response from the bloc and inject fresh market

uncertainty.

Trump said late on Thursday the U.S. would impose a 35%

tariff on Canadian imports next month and planned to impose

blanket tariffs of 15% or 20% on most other trading partners.

Aside from in the currency markets, reactions to the tariff

news have been milder than in April, when Trump launched his

trade war. But that may change if more progress isn't made on

the tariff front soon, said Jake Dollarhide, chief executive

officer of Longbow Asset Management in Tulsa, Oklahoma.

"I don't think the market can take the forever Trump tariffs

on repeat. It's been remarkable the market has been so resilient

in the face of the tariffs, and all of the changing rules,

changing rates, and the pauses, delays, extensions and

surprises," he said.

"The market may have another tariff meltdown much like April

if we don't get more results."

Still, he said, stocks could benefit from second-quarter

earnings reports, which begin next week.

The Dow Jones Industrial Average fell 281.88 points,

or 0.63%, to 44,368.76, the S&P 500 fell 15.03 points, or

0.24%, to 6,265.43 and the Nasdaq Composite rose 7.47

points, or 0.04%, to 20,638.13.

Shares of Nvidia ( NVDA ) climbed over 1% to a record high,

extending the AI chipmaker's stock market value to $4.05

trillion.

Drone makers AeroVironment ( AVAV ) and Kratos Defense &

Security Solutions jumped about 11% after U.S. Defense

Secretary Pete Hegseth ordered a surge in drone production and

deployment.

MSCI's gauge of stocks across the globe fell

3.03 points, or 0.33%, to 923.19. The pan-European STOXX 600

index ended down 1.01%.

"Today, you're seeing a little bit of a pullback because of

the tariffs being announced overnight. It's been three

consecutive days of after-market tariff announcements, and they

seem to be coming relatively randomly, so you don't know what

you're going to get. There's a bit of that nervousness that

might be dampening the excitement today," said Wasif Latif,

chief investment officer at Sarmaya Partners in New Jersey.

The Canadian dollar weakened 0.14% versus the

greenback to C$1.37 per dollar.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.26% to 97.84. The euro was down 0.09% at $1.1689.

Bitcoin gained 3.58% to $117,652.50, hitting another

record high. Crypto investors are betting that policy wins for

the industry, expected next week, could invite new investment in

the asset class.

Earlier in the week, Trump pushed back his tariff deadline

of July 9 to August 1 for many trading partners to allow more

time for negotiations, but broadened his trade war, setting new

rates for a number of countries, including allies Japan and

South Korea, along with a 50% tariff on copper.

Copper prices slipped on Friday, with three-month copper on

the London Metal Exchange 0.4% weaker at $9,664 per

metric ton.

Spot gold rose 1% to $3,355.89 an ounce, as investors

rushed toward safe-haven assets amid the trade tensions.

U.S. Treasury yields rose as investors focused on next

week's consumer price inflation report that may show that price

growth accelerated in June, with the Federal Reserve expected to

keep interest rates on hold as it waits to see the impact of

tariffs on price pressures.

The yield on benchmark U.S. 10-year notes rose

7.3 basis points to 4.419%, from 4.346% late on Thursday.