, opens new tab on Thursday raised its estimate of tariff-related costs for 2025, citing additional levies and clarifications, sending its shares down 3% in extended trading.
Sweeping tariffs have raised costs across Caterpillar's supply chain, as the company imports key components such as sensors, even as manufacturers race to localize production.I’m , opens newon Thursday raised its estimate of tariff-related costs for 2025, citing additional levies and clarifications, sending its shares down 3% in extended trading.
01 Aug, 2025
Caterpillar lifts 2025 tariff hit estimate to as much as $1.8 billion
Aug 28 - Caterpillar (CAT.N)
Sweeping tariffs have raised costs across Caterpillar's supply chain, as the company imports key components such as sensors, even as manufacturers race to localize production.
"While the company continues to take initial mitigating actions to reduce this impact, trade and tariff negotiations continue to be fluid," Caterpillar said in a regulatory filing on Thursday.
Caterpillar now expects a tariff hit of $1.5 billion to $1.8 billion this year, up from its prior forecast of up to $1.5 billion.
On Thursday, it said the higher costs will push its adjusted operating profit margin toward the bottom of its target range, though it left its full-year sales and revenue outlook unchanged.
Industrial machinery makers are grappling with higher costs from Trump's expansive tariffs on imports, while weak demand and elevated interest rates limit their ability to pass on the burden to customers.
The heavy equipment maker also raised its estimate for third-quarter tariff costs to as much as $600 million, from a prior forecast of up to $500 million.
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