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Caterpillar ups estimate of tariff costs
29 August 2025
Caterpillar said additional net costs relating to tariffs would be in the range US$1.5 to $1.8 billion in 2025, with net costs in the third quarter expected to be $500 to $600 million.
The OEM issued the statement on 28 August becaues of changes to tariffs made since its quarterly earnings release on 5 August, at which time it estimated the full-year impact at $1.3 to $1.5 billion.
“While the company continues to take initial mitigating actions to reduce this impact, trade and tariff negotiations continue to be fluid”, said Caterpillar.
A Caterpillar AP555 asphalt paver in action.
The company now expects its full year operating profit margin to be near the bottom of its target range.
“The revised estimated net impact from tariffs is not expected to affect the company’s sales and revenue outlook provided during the second quarter earnings call on August 5, 2025”, said the company.
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