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Caterpillar's tariff costs soar to $1.8 billion this year
Caterpillar, the well-known maker of construction and mining gear, just raised its estimate for this year's tariff costs to a hefty $1.8 billion—up from the $1.3-$1.5 billion they predicted earlier this year.
For just the third quarter, they're looking at $500-$600 million in extra expenses, even as they take mitigating actions and as trade and tariff negotiations remain fluid.
Investors react to the news
Even with these bigger costs, Caterpillar says its sales and revenue forecasts are sticking to what was shared back in August—but profits will likely land at the lower end of their target range.
Investors weren't thrilled: after the update, Caterpillar's stock dropped up to 3.6% in after-hours trading, showing how much tariffs are impacting Caterpillar right now.