(Reuters) -Brown-Forman ( BF/A ) forecast a decline in annual revenue and profit on Thursday, as the Jack Daniel's maker navigates soft consumer spending amid tariff-related uncertainties, sending its shares down about 17% in premarket trading.

Worries of a possible recession and product price increases brought on by international trade wars have dented consumer sentiment in the U.S. and pushed people to cut back on discretionary products such as high-end alcohol.

"We anticipate the operating environment for fiscal 2026 will be challenging, with low visibility due to macroeconomic and geopolitical volatility as we face headwinds from consumer uncertainty, the potential impact from currently unknown tariffs," the company said.

The U.S. also doubled the tariffs on steel and aluminium imports to 50%, posing a risk for the company that makes canned ready-to-drink products.

The liquor maker had said in March that Canadian provinces taking American liquor off store shelves was "worse than a tariff", but noted that it can withstand the impact as Canada accounted for only 1% of its total sales.

Brown-Forman ( BF/A ), however, benefited from the European Union dropping its planned retaliatory tariff on American whiskey.

The owner of Old Forester and Woodford Reserve brands expects both organic net sales and organic operating income for fiscal 2026 to decline in the low single-digit range.

It reported an increase of 1% and 3% in organic net sales and organic operating income, respectively, during fiscal 2025.

The company's sales during the quarter ended April 30 fell 7% to $894 million, compared with analysts' average estimate of $967.4 million, according to data compiled by LSEG.

It earned 31 cents per share during the quarter, missing the estimate of 34 cents.