Trade war turmoil is weighing heavily on financial markets in Canada. Canada’s main stock index has been tumbling along with U.S. indexes since President Donald Trump initiated a trade war with his North American neighbors.

The Bank of Canada has cut its overnight lending rate by 25 basis points to 2.75 per cent, it announced on Wednesday, as an ongoing trade war with the U.S. begins to strain the Canadian economy.

Prices will rise, the economy will suffer and the Bank of Canada can't lower interest rates enough to shield Canadians from the worst impacts of a prolonged trade war with the United States.