Tariffs to Cost Caterpillar Over $1B

Caterpillar’s sobering take on tariffs shows strain.

Aug. 11, 2025

2 min read

By: Brian Womack
Source: The Dallas Morning News (TNS)

Caterpillar’s machines can carve up the most daunting of earth-moving projects, but new tariffs are holding back its ability to scoop up more profits.

The hit for the Irving-based company will be around $1.3 billion to $1.5 billion in 2025, according to Andrew Bonfield, chief financial officer, who spoke on the quarterly call with Wall Street.

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CEO Joe Creed delivered the answer—and tried to give some perspective on Caterpillar, given its broad reach.

“We’re proud of our global footprint that enables us to take care of customers all around the world but as part of that global business, the U.S. represents our largest footprint,” Creed said. “... We’ve built a global supply chain that’s unique to us. It works for us. It’s been developed over a significant amount of time, and … the strategy behind that supply chain allows us to increase our footprint here in the U.S.”

But the company needs more certainty on what the tariffs will entail and will take appropriate actions. In the meantime, “that doesn’t mean we’re doing nothing,” Creed said.

“We’re trimming costs on discretionary spending, things that can be done quickly, easily reversed,” Creed said. “Where we have limited dual sourcing, and it’s beneficial to us, we’re making those moves. We’re working on certification of USMCA (United States-Mexico-Canada Agreement) compliant products. … But we’re going to keep everything on the table, and we’re going to manage this over the medium term.”