Caterpillar Sees US Tariff Hit of Up to $1.5 Billion This Year

Caterpillar Inc. has given investors annual guidance for the first time on how much tariffs will impact the maker of iconic yellow diggers and bulldozers this year, as the Trump administration’s trade war deepens.

The heavy-equipment maker said Tuesday after reporting earnings that it expects to face net incremental tariffs of $1.3 billion to $1.5 billion this year — including as much as $500 million in its third quarter — though its new CEO said the company will be able to offset the impact.