Caterpillar Lifts 2025 Tariff Cost Estimate to Up to $1.8 Billion

Caterpillar Inc. has raised its estimate of how much recently imposed trade tariffs will weigh on its 2025 results, telling regulators the hit could reach as much as $1.8 billion for the full year. The heavy-equipment maker had projected a maximum cost of $1.5 billion as recently as early August. In a filing dated 28 August, the company said it now expects tariffs to erode third-quarter earnings by $500 million to $600 million, pressure that could push operating margins toward the lower end of its guidance range. The increase reflects additional levies announced in late July that target a broad mix of imported components Caterpillar relies on, including sensors and other parts sourced from Canada, the European Union, Japan and India. Caterpillar added that it is pursuing mitigation measures but described the tariff environment as “fluid.” The revised outlook left the company’s revenue guidance unchanged. The stock fell roughly 3% in post-market trading after the disclosure.