The company missed earning expectations for the first quarter and has lowered its earnings expectations for 2020.

Going into 2020, things aren’t looking great for FedEx. The company cut its full-year profit forecasts for 2020, causing shares to plummet shortly after. Moving forward, there are many concerns weighing on FedEx, but the US-China trade war and fears of an incoming recession are the factors the company cited. “Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty,” FedEx CEO Frederick Smith explained in an earnings release.

FedEx said that its first-quarter performance was due to rising costs to expand service offerings and a shift to low-yield services. CFO Alan Graf has explained that the company is looking into further cost-cutting measures going forward. These cost-cutting measures may be necessary in compensating for macro-economic uncertainty. Despite the bad news the company has been faced with, FedEx shares were up 7% year-to-date as of Tuesday’s close.

Another potential contributor to FedEx’s poorer performance is likely Amazon. Just months after claiming that FedEx doesn’t view Amazon as a competitor, Smith finally admitted that the opposite is true.