Caterpillar Confirms Tariffs Could Cost Up to $1.8 Billion in 2025

Caterpillar, the leading U.S. manufacturer of construction and mining equipment, has raised its estimate for the financial impact of tariffs imposed under President Donald Trump's administration, now expecting costs between $1.5 billion and $1.8 billion for 2025, up from an earlier estimate of $1.3 billion to $1.5 billion. The company anticipates tariff-related expenses of $500 million to $600 million in the third quarter alone, an increase from previous forecasts. Despite these higher tariff costs, Caterpillar maintains its sales and revenue outlook but expects its full-year adjusted operating profit margin to fall near the lower end of its target range. The firm is implementing mitigating actions to reduce tariff impacts, though it acknowledges ongoing trade and tariff negotiations remain uncertain and fluid. Caterpillar plans to provide further updates on the situation in its third-quarter earnings report scheduled for October 29, 2025. This adjustment reflects the company's response to additional tariffs and clarifications introduced since its August earnings call.