(Reuters) – Canada’s main stock index fell on Thursday, as anxious investors awaited the outcome of U.S.-China trade talks amid signs that negotiations were turning sour as Washington readies tariffs on Chinese goods.

* Investors across the globe switched to a risk-off mode this week after President Donald Trump threatened to double down tariffs on $200 billion worth of Chinese goods on Sunday, with Washington following it up by setting a trigger on Friday.

* Chinese Vice Premier Liu He was heading to Washington for two days of talks, but Trump’s insistence that China “broke the deal” and Beijing’s response that it would retaliate against tariffs ratcheted up the stakes.

* In domestic data, Canada’s trade deficit in March shrank slightly to C$3.21 billion ($2.38