Tyson Foods, the largest meat company in the US, blamed the escalating global trade war as it issued a profit warning on Monday. The company said the current trade policy in the US, coupled with increased tariffs on US exports, had hit prices negatively, particularly for pork and chicken.

As a result, Tyson has reduced its profit outlook for 2018, revising its adjusted earnings guidance to $5.70 to $6 a share – down from its previous outlook of $6.55 to $6.70. Shares in Tyson have plunged more than 8% in trading on Monday, as markets take a dim view of the profit warning.

Import tariffs

Both China and Mexico, two of the largest export markets for US pork, have imposed import tariffs on US pork in recent months in retaliation to the 10% tariff that US President Donald Trump slapped on imports of steel and aluminium.

“The combination of changing global trade policies here and abroad, and the uncertainty of any resolution, have created a challenging market environment of increased volatility, lower prices and oversupply of protein,” said chief executive of Tyson Foods Tom Hayes.

On top of rising trade tensions, meat prices in the US are under downward pressure as a result of significant oversupply in the market. Higher production of pork and beef has pushed prices of both meats down in the US, which in turn has had a negative impact on chicken prices.