(Reuters) -J.M. Smucker on Tuesday forecast annual profit below analysts' estimates as a surge in coffee costs is expected to squeeze its margin, sending shares of the food maker down 3%.

The parent company of Folgers coffee, which imports green coffee mainly from Brazil and Vietnam, has been hit by U.S. President Donald Trump's steep duties on Brazilian imports this year.

U.S. consumer, hurt by still-high inflation, are also opting for cheaper private-label goods, hurting packaged food companies such as J.M. Smucker, Kraft Heinz ( KHC ) and Hormel Foods ( HRL ).

Meanwhile, a record U.S. government shutdown delayed federal pay and food-stamp benefits, rattling consumers ahead of the holiday season.

The company's overall prices rose 11 percentage points, while volumes decreased 6 percentage points for the quarter ended October 31.

Volumes in its U.S. coffee business, a major revenue generator, dragged net sales by 6 percentage points, while in pet food business they decreased by 8 percentage points.

Executives on a post-earnings call said the company was absorbing coffee tariffs and inflation without raising prices in its U.S. retail coffee portfolio this winter, which will result in additional costs of about $75 million.

Last week, the Trump administration removed 40% tariffs on imports of agricultural products from Brazil, including green coffee beans, but analysts say the benefit could come in the next year.

The Jif peanut butter maker's second-quarter net sales rose 2.6% to $2.33 billion from a year ago, slightly beating analysts' average estimate of $2.32 billion, according to data compiled by LSEG.

J.M. Smucker narrowed its annual net sales growth forecast to a range of 3.5% to 4.5%, from 3% to 5%. It also tightened its profit target to $8.75 to $9.25, from $8.50 to $9.50, the midpoint of which is below analysts' estimate of $9.08.

On an adjusted basis, it earned $2.10 per share, in line with analysts' estimates.