New York (CNN Business) The United States and China are holding fire in their trade war. But Caterpillar is still feeling the pain.

Caterpillar said Wednesday that sales in its Asia-Pacific unit plummeted 22% from a year ago, largely because of weak demand in China. The company's overall revenue and earnings missed forecasts. Caterpillar also said it now expects profit for 2019 will be at the lower end of its outlook.

Caterpillar CAT Shares of, one of the biggest components in the Dow , plunged 4% in early trading. That helped drag the overall market lower.

The equipment maker said that manufacturing costs were higher because of factors including tariffs and labor expenses.

A slowing global economy is also continuing to weigh on Caterpillar, which first warned of weakness in China back in January.

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