Jan 8 Reuters Canada39;s main index fell on Wednesday, with investors taking stock of a report that said U.S. Presidentelect Donald Trump was considering declaring a national economic emergency to allow for new tariffs.

The SPTSX composite index was down 0.26, or 64.5 points, at 24,865.39 and was set for its third straight session of declines.

CNN on Wednesday reported that Trump39;s move will allow him to build a new tariff program by using the International Economic Emergency Powers Act.

Investors have been concerned whether Trump, who is set to take office on Jan. 20, would go through with his rhetoric of imposing a 25 tariff on imports from Canada, which exports 75 of all goods and services to the U.S.

There is quite a bit of caution in the markets with all the policy uncertainty that we39;re facing, said Douglas Porter, chief economist at BMO Capital Markets.

The incoming President Trump is quite serious about imposing tariffs on Canada in a meaningful fashion and that39;s clearly a negative for the Canadian economy and could weigh pretty heavily on the TSX.

Canadian 10year benchmark yield rose following the report, mirroring its U.S. counterpart.

This weighed on ratesensitive real estate and bond proxy utilities sectors, which lost 1.1 and 0.9, respectively.

The domestic market also took cues from Wall Street where the benchmark SP 500 was down 0.3.

The U.S. weekly jobless claims fell to a 11month low last week, pointing to a stable labor market, while a…