Updates with morning prices

By Twesha Dikshit and Sukriti Gupta

July 11 (Reuters) - Toronto's benchmark index fell on Friday as U.S. President Donald Trump ramped up his tariff assault on Canada, while investors assessed better-than-expected domestic employment data for June.

The S&P/TSX composite index .GSPTSE dipped 0.3% at 26,999.13 points and was on track to snap its two-week winning streak.

Trump late on Thursday issued a letter implementing a 35% tariff rate on imports from Canada from August 1, adding that the rate would go up if Canada retaliated. The new tariff is an increase from the current 25% rate that Trump had assigned to Canada.

"Clearly, the U.S. is pushing for more concessions. They're playing a little bit of hardball here, so not good for Canada and the TSX," said Ian Chong, portfolio manager at First Avenue Investment Counsel.

Prime Minister Mark Carney said his government will defend Canadian workers and businesses in their negotiations with the U.S.

An exclusion for goods covered by the U.S.–Mexico–Canada Agreement was expected to stay in place, while 10% tariffs on energy and fertilizer were not set to change, though Trump had not made a final decision, an administration official said.

Meanwhile, domestic jobs data showed that Canada's unemployment rate dropped in June with the first net increase in jobs since January. The data is widely expected to tilt the Bank of Canada towards another hold on its policy rate.

Industrial stocks .GSPTTIN fell 0.6%, while financials .SPTTFS declined 0.8%.

Conversely, energy .SPTTEN stocks added 0.6%, tracking a rise in oil prices. Mining .GSPTTMT shares were up 0.2%, as gold prices rose. O/R GOL/

Gold miners Aya Gold & Silver AYA.TO rose 4.5% and Equinox Gold Corp EQX.TO advanced 2.3%.

Copper prices slipped, and with it, dragged miners Hudbay Minerals HBM.TO and Capstone Copper CS.TO down 3% and 2.5% respectively.

On Thursday, Hudbay said it had temporarily suspended its Snow Lake operations due to a wildfire in Northern Manitoba.

Meanwhile, Aritzia ATZ.TO added 1.6% after the fashion retailer's first-quarter results beat expectations.

MTY Food Group MTY.TO shares dropped 8.6% after the company's second-quarter adjusted earnings per share missed analyst estimates.

(Reporting by Twesha Dikshit and Sukriti Gupta; Editing by Shreya Biswas and Leroy Leo)

((Sukriti.Gupta@thomsonreuters.com;))