Intel CFO David Zinsner says President Donald Trump Tariffs and retaliation in other countries have increased the possibility of a recession.

“U.S. liquid trade policies and regulatory risks in the future have increased the chances of a slowdown and the possibility of a recession grows,” Sinsner said in a quarterly earnings call on Thursday.

Intel reports that expectations are good First quarter resultsThe company said it was partly because some customers stored the chips before the tariffs. However, revenue and profit guidance was lower than expected, reducing chipmaker stock by more than 5%.

Intel’s forecast for the quarter is $11.2 billion to $12.4 billion. Singhner said the range was “wider than normal” due to uncertainty arising from tariffs.

The company’s prospects emphasize manufacturers’ sensitivity to trade restrictions, even for companies dedicated to making products in the United States and Intel produces some of its advanced processors at home, it can also be combined with Taiwan Semiconductor Manufacturing Company And Samsung manufactures chips in South Korea and imports chip machinery from ASML in Europe. The company also needs parts and materials from China.

Singhner said the tariff environment makes it harder for Intel to predict its quarterly and year-on-year performance, adding that the overall market for chips is now expected to shrink, especially if consumers stop buying new computers.

“The biggest risk we’re seeing is the reaction of businesses and consumers to higher costs and uncertain economic backgrounds, with potential investments and spending potentially having an impact,” Sinsner said.

He added that while Intel has enough production in different places around the world to ease certain tariffs, the company “definitely increases costs.”

One possibility is that consumers can choose laptops and other computers based on older chips, which are cheaper, said Michelle Johnston Holthaus, CEO of Intel Products.

“The macroeconomic concerns and tariffs make everyone bets from the inventory point of view,” Holthaus said in the earnings call.

In addition to tariffs, Intel faces U.S. government efforts to require licenses to ship advanced chips for artificial intelligence Go to China and other countries.

Intel’s earnings report on Thursday was the first of its CEO Lip-Bu Tan, who was appointed to work last month. Tan says he plans Cut Intel’s operating and capital expenses To make the company more effective.

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