(Reuters) -Eastman Chemical forecast second-quarter profit below Wall Street expectations on Thursday and said it would curtail expenses in response to market volatility resulting from President Donald Trump's tariff plans.

Shares of the company were down 3.5% at $78.00 in extended trading.

The chemical industry faces weak demand and high input costs, particularly in Europe, where a challenging regulatory environment has prompted companies to rethink their strategies. Trump's erratic trade policies further add to uncertainty for the industry.

Earlier on Thursday, peer Dow said it expects extended pressure on earnings due to persistent uncertainty.

The company now expects second-quarter adjusted profit to be between $1.70 and $1.90 per share, below Wall Street expectations of $2.18 per share, according to data compiled by LSEG.

Eastman also said it was increasing its cost reduction target to about $75 million, net of inflation, and reducing capital expenditures to around $550 million for 2025, compared to its previous forecast of $800 million.

However, the chemical firm beat first-quarter profit estimates, thanks to strong performance at its Kingsport facility and improved selling prices for some of its products.

Eastman's Kingsport, Tennessee facility utilizes advanced technology to convert plastic waste back into its original monomers, which could then be used to make new plastic products. The facility has the capacity to recycle about 110,000 metric tons annually.

The company reported an adjusted profit of $1.91 per share for the quarter ended March 31, compared with analysts' average estimate of $1.89 per share, according to data compiled by LSEG.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Mohammed Safi Shamsi)