(Adds analyst comments in paragraphs 5,6,8, updates prices)

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US equities slip while US yields rise

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Trump's back and forth on tariffs weighs on sentiment

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US dollar down vs yen but up against euro, Swiss franc

By Sinéad Carew and Harry Robertson

NEW YORK/LONDON, March 13 (Reuters) - Equities around

the world fell and U.S. Treasury yields rose on Thursday as

investors worried about global trade tensions after U.S.

President Donald Trump threatened duties of 200% on European

beverage imports if the EU does not remove U.S. whiskey

surcharges.

Investors were also keeping an eye on wrangling over a

possible, partial, U.S. government shutdown.

Thursday's Labor Department's Bureau of Labor Statistics

data showed U.S. producer prices (PPI) were unexpectedly

unchanged in February. This was after Wednesday's data showed

U.S. consumer prices (CPI) rose more slowly than expected.

But investors worried that the cooling trend would not be

sustainable as tariffs on imports raise prices in coming months.

"The February CPI and PPI reports were both better than

expected, and show that the turn of the year spike in inflation

was likely noise and not signal," said Bill Adams, Chief

Economist for Comerica Bank in a research note.

But he wrote that the inflation outlook depends more on

government policies as tariffs, deportations and Department of

Government Efficiency (DOGE) moves than "the backward-looking

data releases right now."

Trump's increased tariffs on all U.S. steel and aluminium

imports took effect on Wednesday, drawing swift retaliation from

Canada and the European Union.

"The guidance out of the White House is so erratic that

investors cannot absorb every news flash into their investment

strategies," said Peter Andersen, founder of Andersen Capital

Management.

On Wall Street, at 10:52 a.m. the Dow Jones Industrial

Average fell 135.84 points, or 0.33%, to 41,212.42, the

S&P 500 fell 22.11 points, or 0.41%, to 5,576.26 and the

Nasdaq Composite fell 135.68 points, or 0.78%, to

17,510.56.

MSCI's gauge of stocks across the globe fell

3.58 points, or 0.43%, to 827.27.

The pan-European STOXX 600 index fell 0.01% after

rising 0.81% in the previous day's session.

While the U.S. S&P 500 index is now down more than 5% for

the year, European stocks are faring better with support from

government spending plans for defence and a potential Ukraine

peace deal. Year-to-date the STOXX index is up more than 6% year

to date, despite slipping in recent weeks.

U.S. Treasury yields rose on Thursday, on concerns about the

potential for higher inflation due to tariffs despite the cooler

than expected inflation.

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

1.2 basis points to 4.328%, from 4.316% late on Wednesday.

The 30-year bond yield rose 1.2 basis points to

4.6433% from 4.631% late on Wednesday.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

fell 0.2 basis points to 3.993%, from 3.995% late on Wednesday.

In currencies, the U.S. dollar was a mixed bag.

The euro was down 0.25% at $1.0859 but against the

Japanese yen, the dollar weakened 0.22% to 147.91.

However, against the Swiss franc, the dollar

strengthened 0.25% to 0.884.

After rallying on Wednesday on a larger-than-expected draw

in U.S. gasoline stocks, oil prices slipped on Thursday as

traders weighed macroeconomic concerns and demand versus supply

expectations.

U.S. crude fell 0.55% to $67.31 a barrel and Brent

fell to $70.59 per barrel, down 0.51% on the day.

Gold prices gained on Thursday, holding near all-time high

levels, as elevated tariff uncertainty and bets on Federal

Reserve policy easing kept bullion's appeal strong.

Spot gold rose 1.26% to $2,968.99 an ounce. U.S. gold

futures rose 0.94% to $2,966.60 an ounce.