(Updates to afternoon U.S. trading)

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US stocks dip after tariff plans confirmed

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Dollar gains versus euro, yen

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10-year Treasury yields jump

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Oil prices tick down

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Gold hit record

By Lawrence Delevingne and Harry Robertson

BOSTON/LONDON, Jan 31 (Reuters) -

Wall Street

stocks slipped

and the dollar gained, on Friday after President Donald

Trump announced tariffs on Canada, Mexico and China, capping a

volatile week for markets.

The U.S. will impose 25% tariffs on Canada and Mexico, along

with 10% on China, White House spokeswoman Karoline Leavitt said

on Friday, but she declined to say whether there will be

exemptions.

Reuters earlier quoted sources familiar with the tariff

deliberations as saying that Trump would announce tariffs on

Canadian and Mexican imports on Saturday but delay collection of

the duties until March 1 and offer a limited process for certain

imports to be exempted.

The Dow Jones Industrial Average fell 0.56%, the U.S.

S&P 500 stock index lost 0.25%, while the tech-heavy

Nasdaq was flat, set to end the week slightly lower.

The Nasdaq had dropped 2.9% on Monday as the surging popularity

of cheap Chinese AI model DeepSeek shook investor confidence in

U.S. tech stocks and sent chipmaker Nvidia ( NVDA ) plunging

17%. But earnings reports and forecasts this week from Meta

and Tesla helped sentiment recover somewhat.

Apple ( AAPL ) initially added to the cautiously optimistic mood

late on Thursday when it forecast relatively strong sales

growth, but its stock was last down about 1.5% Friday.

European shares closed at a record high, led by technology

stocks, as earnings from companies such as Novartis and

Hexagon overshadowed concerns over economic recovery.

TARIFFS LOOM

In currency markets, the dollar index, which measures

the greenback against a basket of currencies including the yen

and the euro, rose 0.3%

Options contracts showed investors were preparing for potential

swings in the Canadian dollar and Mexican peso .

The Canadian dollar was last down 0.17% and the peso was 0.3%

higher in choppy trading.

Trump is threatening punitive duties if Canada and Mexico do

not take stronger action to halt the flow of the deadly opioid

fentanyl and precursor chemicals into the United States, as well

as illegal migration.

"There is big market complacency in terms of the manner that

the market could digest the tariffs," said Michael Nizard,

multi-asset chief investment officer at Edmond de Rothschild.

The euro and sterling both declined about 0.2% versus the

dollar .

Data on Friday showed the U.S. personal consumption

expenditures price index rose 0.3% last month after an unrevised

0.1% gain in November, in line with economists' expectations.

"Disinflation continues, and should continue given

underlying trends," David Alcaly, lead macroeconomic strategist

at Lazard Asset Management, said in an email.

"Concerns about recent bumpiness are overblown and have more

to do with the potential for inflationary policy change like

tariffs than with current conditions."

Benchmark 10-year Treasury yields jumped following the Trump

tariff plans and were last up 6.1 basis points to 4.573%

.

Data on Thursday showed U.S. economic growth slowed in the

fourth quarter, but remained robust enough for investors to

expect the Federal Reserve - which held interest rates on

Wednesday - to lower borrowing costs only gradually this year.

Euro zone short-dated government bond yields were on track to

record their biggest weekly drop in months, after a raft of weak

economic data led traders to ramp up their bets on future rate

cuts from the European Central Bank. The ECB cut rates on

Thursday and signaled more easing was coming.

Oil prices edged lower ahead of the new tariffs against Canada

and Mexico. U.S. crude fell 0.48% to $72.38 a barrel and

Brent dropped to $76.77 per barrel, down 0.13% on the

day.

Gold prices surpassed

the key $2,800 mark for the first time on Friday, fuelled by

a rush to safety. It was last trading at $2,796.