Live

Watch CBSN Live

Tyson cites tariffs in cutting earnings outlook for the year

How trade war could impact businesses

Tyson Foods is cutting its profit forecast, citing higher tariffs and uncertainty about trade policies.

Shares of the Springdale, Arkansas-based company fell 6 percent after it issued weaker guidance. Tyson said Monday the tariffs are primarily affecting chicken and pork prices, in the U.S. and elsewhere. President Donald Trump has placed tariffs on a range of goods. Mexico, a $1.5 billion export market for U.S. pork producers, responded by saying it would impose retaliatory tariffs after the U.S. went forward with proposed tariffs on steel and aluminum. China, the third-largest export market for pork, hiked tariffs on imported products to 25 percent in April as part of its response to U.S. actions on trade.

Tariffs on steel and aluminum are also pressuring automakers, and General Motors also cut its outlook for the year. "New tariffs or quotas would also reduce competition and consumer choice, increase the cost of used vehicles and raise the cost of getting vehicles serviced and repaired," Peter Welch, president of the National Automobile Dealers Association, said earlier.

Tyson Foods Inc. says it now expects adjusted earnings of about $5.70 to $6 per share for the year, down from $6.55 to $6.70 per previously. CEO Tom Hayes said "changing global trade policies here and abroad" and "the uncertainty of any resolution" contributed to lower prices and an oversupply.

View CBS News In
CBS News App Open
Chrome browser logo Chrome Safari browser logo Safari Continue