CHICAGO (Reuters) - An outbreak of bird flu in poultry in the U.S. state of Georgia, the nation's biggest chicken producer, is set to trigger trade restrictions from major meat importers, an industry group said on Tuesday, warning of a move that could financially harm farmers and processors.

A flock of 45,500 breeder chickens tested positive last week in Elbert County, Georgia, near the border with South Carolina, according to the U.S. Department of Agriculture. It was the state's first confirmed case in a commercial poultry operation, Georgia's agriculture department said.

The case comes as food producers worry that President Donald Trump's threats to impose tariffs on goods from trading partners, such as China and Mexico, will lead to retaliation that could also hurt U.S. agricultural exports.

An outbreak in a commercial flock typically triggers trade restrictions on poultry products from the county or state where the infected farm is located. The restrictions expected on Georgia's poultry threaten producers and processors, such as Pilgrim's Pride.

Initial losses for exports could be about $34 million, the USA Poultry & Egg Export Council said.

Mexico, the biggest importer of U.S. poultry products, will likely halt purchases from Georgia for about two to four weeks, until it revises the ban to apply to the county, the industry group said.

Taiwan, the third-biggest importer of U.S. poultry, will block poultry imports from Georgia for six to eight months, the export council estimated.

South Korea will likely impose a ban on Georgia's poultry that should be lifted 28 days after the virus has been eliminated, a process that will likely take three to four months, the council said.

USDA had no immediate comment on potential trade restrictions.

More than 138 million U.S. chickens, turkeys and other birds have died from bird flu or been culled to contain the disease since 2022. About 930 dairy herds and 67 people, mostly farmworkers, tested positive since 2024.

"This is a serious threat to Georgia's No. 1 industry," Georgia Agriculture Commissioner Tyler Harper said in a statement.

China has blocked Georgia's poultry since 2023, when a commercial flock of waterfowl tested positive, USDA records show.