Caterpillar Inc., the world’s largest construction equipment maker, announced Monday that it is being forced to raise prices on its machines to offset the costs of President Trump’s massive tariffs on aluminum and steel imports.
In its second-quarter earnings statement, Caterpillar said it expects recently imposed tariffs to shave off $100 million to $200 million from its bottom line in the second half of the year due to extra material costs.
Caterpillar’s revelation comes after the Trump administration slapped tariffs on $34 billion of Chinese goods earlier this month. The U.S. has also implemented tariffs on steel and aluminum imports from Mexico, Canada and the European Union.
The Hill notes that Caterpillar is the latest in a series of companies, including Harley Davidson, Coca-Cola Co. and BMW, to announce price increases, changes in production location or other struggles due to Trump’s ongoing trade battles.