Caterpillar Inc. has increased its estimated financial impact from tariffs for the full year 2025 to a range of $1.5 billion to $1.8 billion, up from a previous estimate of $1.3 billion to $1.5 billion. The company expects the third quarter alone to absorb $500 million to $600 million in tariff-related costs. This revision reflects additional tariff clarifications and new tariffs announced, which have pressured Caterpillar's margins toward the lower end of its guidance. The higher tariff costs contributed to a 3% decline in Caterpillar's stock in after-hours trading. The increased tariff burden is part of broader trade tensions, including ongoing U.S. tariff policies originally implemented under the Trump administration. These tariffs have also led other companies to anticipate price increases for consumers. Caterpillar's second-quarter results were already impacted by tariffs, with costs at the high end of earlier estimates. The company’s warning signals potential further price hikes across industries as tariff costs are passed on to consumers.