When presenting its second-quarter results early this month, the construction and industrial machine manufacturer estimated the net impact of the duties to be applied from Aug 7 at between US$1.3 billion and US$1.5 billion for 2025.

But in the weeks since, “several additional clarifications and additional tariffs have been announced” that will impact the company’s financial results, it said in a filing with the Securities and Exchange Commission.

“Based on the changes” anticipated from August 31 onwards, the company “now expects the net impact from incremental tariffs introduced in 2025 will be between approximately US$500 million to US$600 million for the third quarter and approximately US$1.5 to US$1.8 billion for 2025,” Caterpillar Inc said in its filing.

The company continues “to take initial mitigating actions to reduce this impact” in the context of continuing tariff fluidity, it said.

In the second quarter, the net impact of tariffs was at the high end of the expected range of US$250 to US$300 million. With Thursday’s forecast, Caterpillar now “expects its full year adjusted operating profit margin to be near the bottom of the target margin range.”

The company’s 2024 revenue was US$64.8 billion and was expected to be slightly higher in 2025.