Primark Flow shares fell after the budget clothing chain dropped sharply in UK sales and lost market share as the company warned that consumer confidence could be further intensified due to Donald Trump's trade war.

The related British Foods (ABF) also has sugar businesses and food brands such as Ryvita and Kingsmill, he said several countries can slide into recession due to U.S. trade policy.

“With the recent U.S. tariff announcements, China’s retaliatory actions, and the risks of further tariff trade wars, it’s unlikely to improve people’s attention,” the ABF said. “As many countries, including the U.S., consumer confidence may worsen further, facing a recession risk that could increase personal debt problems.”

The warning is due to strong sales growth in Primark during Christmas, but sales in the UK and Ireland fell by 6% in the 24-week period to March 1. Its stock price fell more than 9%.

Last month, Primark's long-time boss Paul Marchant resigned from a woman's allegation of her behavior in social situations. He admitted to "misjudgment". The company said Tuesday it was looking for a permanent successor.

The company said the overall UK apparel market has declined, reflecting cautious consumer confidence and “a lack of seasonal buying catalysts in the fall months due to mild weather”. Shopping is particularly weak among Primark’s customer base and thus loses some market share.

However, the company said there were some early signs of improvement in the UK in recent weeks.

Primark's overall sales grew by 1%, helped by countries such as the United States, Spain, Portugal, France, Italy, and Central Europe, where budget retailers have been opening new stores.

ABF's group revenue fell 2% to £9.5 billion, and pre-tax adjusted profit fell 10% to £818 million as its sugar companies struggled and lost operating losses after a sharp price drop.

"These results reflect the outstanding performance of four of our five divisions. I'm frustrated with the results of our sugar-making business, but we have a clear understanding of the ways in which financial performance needs to be improved through operational and regulatory solutions," said George Weston, CEO of ABF.

ABF threatens to shut down its UK bioethanol plant Vivergo unless the government intervenes to change regulations. Vivergo has caused operational losses in the past six months due to the continued low price of bioethanol. The way regulations are applied to bioethanol is undermining the commercial viability of its business, the organization said.

"We are having constructive discussions with the UK government to explore regulatory options to improve the position," it said. "There is no guarantee that these discussions will be successful and we will either close the Vivergo factory if necessary."

Primark's revenue is "working to gain momentum", but the recent good weather can improve footprint and sales, said Aarin Chiekrie, equity analyst at Hargreaves Lansdown. However, he added that the chain “rely on overseas growth to improve performance.”

He added: "The regulation of its bioethanol plant Vivergo also makes operations unviable, and unless the discussions with the UK government are fruitful, the ABF may be forced to close the plant, at least temporarily," he added.