Heck yeah! I disciplined all of mine the most diligently between the ages of one and two. That's why they're all sweeties I can take anywhere now at 5, 3 and 2. If you nip things firmly now, you'll prevent terrible two's. She's not starting late. Nip it! One calm (no anger), instructional, "no" with a good swat on the "hitting" hand- or bottom if she's being defiant after a couple of times-will solve it quickest.
If you'd rather hover, distract, redirect, remove etc for months and risk injury to other kids, that's more popular these days, but kids are SHARP, and don't like their hands or butt's stung if they can help it. Is it self control under duress? Perhaps, but self control nonetheless. And when it clicks, it becomes their natural knowledge that hitting is wrong. This stopped all mine in their tracks and it was never an issue.
And I promise you, at 16 months she's not going to ponder the irony of hitting for hitting. She'll be way used to not hitting by the time she's got that type of reasoning. At this age it's all about "what I want and don't want" to a child. Like, I want to hit, kick, pinch, head butt and bite, but I don't want mom to swat me. Check. Not gonna do it. A calm warning is all you'll need.
Believe me, you wont' believe how fast it is. And this won't take away her future ability to think critically either in case you hear that one. It never has in myself or anyone I know anyway. And my 5 year old who almost never needs discipline is an awesome critical thinker.