Earnings of US companies are falling after optimistic beginning of this year, Reuters reports. Escalating trade war between two largest economies in the world started influencing the results of corporations from Caterpillar Inc to Ford Motor Co.

Even though earnings growth is still quite high and was 22% last quarter, the amount by which S&P 500 index companies exceed analytics’ expectations is about half of the amount demonstrated in first quarter.

Along with interest rates hike, which made bonds more attractive, slower earnings was one of the main reasons for stocks decline around the world.

Caterpillar Inc., the largest manufacturer of construction equipment in the world, announced that US import tariffs on steel as well as higher costs of transportations cost about $40 billion in recent quarters. Shares of Caterpillar lost 8% in the middle of trading session on Tuesday.

Tax reduction that is evaluated as $1,5 trillion and resulted in earnings growth in the beginning of this year, now is bypassed by growing costs from new duties, analytics think.

3M Co is among the companies that state tariffs as a negative factor. The company’s shares lost 6% after the sales were below forecast and outlook is reduced due to slowdown in China and growing duties. Ford Motor announced earlier that US steel tariffs already cost it $1 billion in profit.

It is expected that earnings growth will fall to 9% in second quarter of next year.