(Reuters) -Caterpillar on Thursday raised its estimate of tariff-related costs for 2025, citing additional levies and clarifications, sending its shares down 3% in extended trading.
Sweeping tariffs have raised costs across Caterpillar’s supply chain, as the company imports key components such as sensors, even as manufacturers race to localize production.
Caterpillar 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.
The heavy equipment maker also raised its estimate of third-quarter tariff costs to as much as $600 million, from a prior forecast of up to $500 million.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Maju Samuel)
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