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U.S. markets sustained deep losses while Canada’s main stock index posted a triple-digit decline over rising concerns about a looming trade war between the U.S. and China.

With negotiations set to resume on Thursday in Washington, the U.S. has said higher tariffs on China will take effect on Friday.

The S&P/TSX composite index closed down 135.71 points to 16,357.75.

In New York, the Dow Jones industrial average was down 473.39 points at 25,965.09. The S&P 500 index was down 48.52 points at 2,884.05, while the Nasdaq composite was down 159.53 points at 7,963.76.

The Canadian dollar traded at an average of US74.21¢ compared with an average of US74.32¢ on Monday.

The June crude contract was down 85¢ at US$61.40 per barrel and the June natural gas contract was up 1.2¢ at US$2.54 per mmBTU.

The June gold contract was up US$1.80 at US$1,285.60 an ounce and the July copper contract was down 4.4 cents at US$2.79 a pound.