Caterpillar raised its estimate of tariff-related costs for 2025, citing additional levies and clarifications. The company 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. Industrial machinery makers are grappling with higher costs from Trump’s tariffs on imports.

The Trump administration’s latest tariffs target imports from dozens of countries, including major trading partners like Canada, the European Union, Japan, and India. Caterpillar imports key components such as sensors, leading to increased costs across its supply chain. The company raised its estimate for third-quarter tariff costs to as much as $600 million.

Caterpillar’s shares fell 3% in extended trading after the announcement. The company stated that it continues to take mitigating actions to reduce the impact of tariffs. Despite the higher costs, Caterpillar left its full-year sales and revenue outlook unchanged. The company’s adjusted operating profit margin is expected to be towards the bottom of its target range.

Read more at Yahoo Finance: Caterpillar lifts 2025 tariff hit estimate to as much as $1.8 billion