Royal Philips NV lowered its profitability outlook for the year to account for the damage from rising trade hurdles.

The health-technology group posted lower first-quarter sales and earnings as its CEO said it was particularly hit by trade tariffs imposed between both countries.

Philips has predicted tariffs will have a net impact of up to 300 million euros ($340 million) this year despite the company taking “substantial” steps to mitigate the effects.