CANADA STOCKS-TSX futures fall as Trump's reciprocal tariffs take effect

April 9 (Reuters) - Futures tied to Canada's main stock index fell sharply on Wednesday, after China announced additional tariffs on U.S. goods in retaliation after President Donald Trump's reciprocal tariffs took effect, intensifying fears of a global economic fallout.

The futures on the S&P/TSX index SXFcv1 were down 1.2% at 7:12 a.m. ET (1112 GMT).

Hopes of concessions faded after a massive 104% duty on Chinese goods came into force, while the European Union prepared retaliatory measures, leaving investors increasingly wary of risk assets.

China's finance ministry said it will impose 84% tariffs on U.S. goods from Thursday, up from the 34% previously announced.

U.S. Treasuries, the bedrock of the global financial system, were hit by fresh selling pressure, as investors rushed to liquidate even their most secure holdings in a bid for cash.

Meanwhile, shares of Canadian gold miners found support from higher bullion prices, as traders sought the safe-haven asset with a weaker dollar and the rising prospect of U.S. rate cuts.

Oil prices fell for a fifth day to their lowest since February 2021, as the trade war and its potential impact on global economic growth stoked worries over energy demand.

Copper prices dropped to an eight-month low in China as higher U.S. tariffs reduced buying interest.

On the economic front, minutes from the Federal Reserve's March policy meeting are due later in the day, while the U.S. consumer price inflation report is set for Thursday, which could offer more clues on the inflation trajectory in the world's largest economy.

On Tuesday, Canada's main stock index fell to a near eight-month low ahead of an expected escalation of the trade war between the U.S. and China.

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