New York/Chicago — Tyson Foods blamed the escalating trade dispute as the largest US meat producer cut its full-year profit forecast. Both China and Mexico have imposed import tariffs on American pork recently in retaliation to US duties on metal shipments. The measures have sent pork prices plunging. The Arkansas-based company said on Monday that it is also grappling with higher commodity-market volatility and "sluggish" domestic demand for chicken.
"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," CEO Tom Hayes said. The US farm sector is one of the few areas of the economy that typically operates with a trade surplus, and agriculture groups have sounded off against the trade war’s potential toll on exports. Net farm income is poised for a 12-year low in 2018, and challenges for meat demand may offset some of...
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