CANADA STOCKS-TSX tumbles as Trump's tariff pause rally fades

By Sanchayaita Roy

April 10 (Reuters) - Canada's main stock index fell on Thursday, in broad-based declines, coming off the previous session's rally spurred by U.S. President Donald Trump's temporary tariff relief.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 2.5% at 23,134.8 points.

Trump on Wednesday suspended most of the hefty tariffs for 90-days, providing relief to rattled global markets that led TSX to notch its biggest single-day gain in five years.

"We are probably getting some profit-taking because there were some huge trading profits made by people yesterday", said Colin Cieszynski, chief market strategist at SIA Wealth Management.

However, Trump simultaneously escalated the trade conflict by raising tariffs on Chinese imports to 125% from 104%, which had only taken effect on Wednesday.

The tariff pause will not apply to duties paid by Canada and Mexico, because their goods are still subject to 25% fentanyl-related tariffs if they do not comply with the U.S.-Mexico-Canada trade agreement's rules of origin.

On TSX, energy stocks .SPTTEN led the declines, down 5.7%, after oil prices retreated by more than 3%, amid fears of a deepening U.S.-China trade war.

Information technology .SPTTTK fell 4.7%, with shares of e-commerce company Shopify SHOP.TO slipping 7%.

Bucking the trend, materials .GSPTTMT gained 1.7% as gold prices rose more than 1%, extending the previous session's sharp rise on safe-haven demand.

On the data front, U.S. consumer prices unexpectedly fell 0.1% in March, in line with estimates, but inflation risks remain high as Trump's increased tariffs on Chinese goods, escalated the high-stake trade war between the two major global economies.

Looking ahead, the U.S. earnings season could offer insights into the health of corporate America.

"Tomorrow, earnings season starts with big banks in the United States and everybody's going to be looking for that, what our companies thinking about the economy" Cieszynski added.