(Updates to U.S. market close)

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US stocks dip after tariff plans confirmed

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US dollar gains versus euro, yen, Canadian dollar

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10-year Treasury yields jump

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Oil prices ease after choppy trading

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Safe haven gold hits 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 saying that Trump

would delay collection of the duties until March 1 and offer a

limited process for certain imports to be exempted.

Wall Street shares reversed on Friday to

finish in negative territory

. The Dow Jones Industrial Average ended down 0.75%,

the U.S. S&P 500 stock index lost 0.5%, and the

tech-heavy Nasdaq dropped 0.3%.

"As was the case for Monday's AI news, it remains to be seen

how the markets will absorb this development on a longer-term

basis," Daniel Skelly, head of Morgan Stanley's Wealth

Management Market Research & Strategy Team, said in an email.

"This week has been a reminder of how unexpected events can

quickly shift market perceptions."

The Nasdaq had lost 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 fell about 0.7% 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 0.25%

The Canadian dollar lost 0.26% and the peso was 0.24% 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 U.S., as well as

illegal migration. Goldman Sachs economists have estimated that

across-the-board tariffs on Canada and Mexico would imply a 0.7%

increase in core inflation and a 0.4% hit to gross domestic

product.

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

market could digest the tariffs," Michael Nizard, multi-asset

chief investment officer at Edmond de Rothschild, said earlier

on Friday.

The euro and sterling both declined about 0.1% 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 3.7 basis points to 4.549%

.

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

eased on Frida

y and closed the week lower. Brent crude futures

for March, which expire on Friday, settled down 11 cents at

$76.76 a barrel.

Gold prices surpassed the key $2,800 mark for the first time

on Friday, fuelled by a rush to safety.