GRAINS-Soybeans slip as U.S.-China tariff sparring continues

* Soybeans fall as much as 2.7 pct before trimming losses

* U.S. plan for more tariffs on China cools sentiment

* Corn, wheat each down 1 pct

(Updates with European trading, changes byline/dateline) PARIS/SYDNEY, April 6 (Reuters) - U.S. soybean futures fell on Friday after Washington threatened further tariffs on China, keeping investors wary of a trade battle between the world's largest soybean producer and importer. Corn and wheat were also lower as the latest step in tit-for-tat tariff proposals by the United States and China dampened sentiment, although losses were limited by the widespread view that the two sides would avoid actually implementing such levies. Investors were also focusing on a monthly U.S. employment report due at 1230 GMT while grain traders were starting to look ahead to monthly U.S. government crop forecasts on Tuesday. The most active soybean futures on the Chicago Board of Trade were down 1.8 percent at $10.12-1/2 a bushel by 1135 GMT. The contract earlier fell to $10.03 but held above Wednesday's near two-month low of $9.83-1/2. Market sentiment soured after President Donald Trump said on Thursday he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China, escalating an already heated trade dispute between the countries.

Beijing had rattled grain markets on Wednesday by threatening extra levies on U.S. goods including soybeans, the most valuable U.S. farm export to China, before fears eased on Thursday as many cited China's reliance on U.S. soybeans.

"The market came back after tanking on Wednesday and I think the market had its fingers crossed that they would come back from the edge but there doesn't seem any sign of that," Phin Ziebell, agribusiness economist at National Australia Bank, said of the U.S.-China trade tensions. CBOT corn futures were down 1.1 percent at $3.85 a bushel, having rebounded 2 percent in the previous session. CBOT wheat was down 1.0 percent at $4.60-1/4 a bushel, easing from an earlier three-week high of $4.66-1/2. Corn was also included by China on its list of U.S. goods that could be hit the trade row could reinforce a trend for Chinese importers to source more corn from Ukraine. "There's a broad effect from the U.S. announcement overnight that is weighing on prices," Alexandre Boy of consultancy Agritel said. "People are trying to assess what impact these measures could have on different products." Wheat prices have been supported by concern over poor growing conditions for U.S. wheat, with frost this week posing another threat to winter wheat in the drought-affected U.S. Plains.

Prices at 1135 GMT

Last Change Pct End Ytd Pct Move 2017 Move CBOT wheat 460.25 -4.50 -0.97 427.00 7.79 CBOT corn 385.00 -4.50 -1.16 350.75 9.76 CBOT soy 1012.50 -18.75 -1.82 961.75 5.28 Paris wheat May 166.25 -0.50 -0.30 162.50 2.31 Paris maize Jun 166.75 -0.25 -0.15 163.50 1.99 Paris rape May 352.50 0.00 0.00 352.75 -0.07 WTI crude oil 62.96 -0.58 -0.91 60.42 4.20 Euro/dlr 1.22 0.00 -0.01

Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne

(Reporting by Gus Trompiz in Paris and Colin Packham in Sydney Editing by Aaron Sheldrick by Hugh Lawson)