Potential financial repercussions from Trump's tariffs may reach approximately $1.8 billion
Caterpillar Raises Estimate for Tariff Burden in 2018
American construction equipment specialist, Caterpillar, has revised its estimate for the tariff burden this year, citing additional tariffs and clarifications that have occurred since the initial estimate.
The company now expects to bear a tariff cost burden of between $1.5 to $1.8 billion, an increase from the initial estimate of $1.3 to $1.5 billion. This revised estimate was announced, but the exact date remains unclear in the provided search results.
For the current quarter alone, Caterpillar now expects tariff costs of $500 to $600 million, up from the previously anticipated $400 to $500 million. This means an additional $500 to $600 million in tariff costs for the current quarter.
The increase in the estimated cost is due to additional tariffs and clarifications that have occurred since the initial estimate. The details on the measures to mitigate tariff impacts have not yet been disclosed.
In early August, Caterpillar CEO Jim Umpleby announced plans to mitigate tariff impacts. However, details on these measures were not provided at that time.
It is important to note that these tariff costs are significant for Caterpillar. The total estimated tariff burden for the entire year is now between $1.5 to $1.8 billion, up from the initial estimate of $1.3 to $1.5 billion.
This news comes as President Donald Trump's import tariffs continue to impact various industries across the United States. Caterpillar's revised estimate underscores the ongoing challenges these tariffs pose for businesses and the economy as a whole.
Stay tuned for further updates on Caterpillar's tariff cost situation and their plans to mitigate these impacts.
