Caterpillar sees roughly $500M-$600M impact from tariffs in Q3

In a regulatory filing, Caterpillar (CAT) provided an update relating to the estimated impact of tariffs on its financial results. Since the company released its second quarter earnings on August 5, 2025, several additional clarifications and additional tariffs have been announced. These clarifications and additional tariffs will impact the company’s financial results for the third quarter and the remainder of 2025. While the company continues to take initial mitigating actions to reduce this impact, trade and tariff negotiations continue to be fluid. Based on the changes and clarifications announced since August 5, 2025 and expected to be in place as of August 31, 2025, the company now expects the net impact from incremental tariffs introduced in 2025 will be between approximately $500M to $600M for the third quarter and approximately $1.5B to $1.8Bfor 2025. Including the net impact from incremental tariffs, the company now expects its full year adjusted operating profit margin to be near the bottom of the target margin 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. Further updates will be provided in the Company’s third-quarter earnings announcement and conference call on October 29, 2025.