As the US and Canada head into trade turbulence the markets are already feeling the effects. The TSX and Dow are dropping after the Trump administration announced steel and aluminum tariffs would be slapped on Canada as of midnight. The move comes as the two sides have drifted on NAFTA negotiations.

The TSX is down to 16,024 and across the border the Dow is plummeting 264 points to 24,403. Experts say a trade war is looming as the US has heightened tensions with China as well. The drop in the TSX follows a reported slowdown in Canada’s economy, primarily due to the housing market.

Stat Can’s GDP report showed a growth of 1.3 per cent, compared to 1.7 per cent, with analysts suggesting the weight came from the mortgage stress test in Canada affecting the housing market.

Meanwhile, oil continues to slip as a recent inventory report showed a surplus in crude product. US crude is down to 67.68 a barrel. The Loonie is down slightly to 77.08 cents US.