NEW YORK, Aug 29, 2025 (BSS/AFP) - Industrial giant Caterpillar announced Thursday it was revising its estimate for the economic impact caused by new tariffs upwards, saying they might cost the US company up to $1.8 billion this year.

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 August 7 at between $1.3 billion and $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 $500 million to $600 million for the third quarter and approximately $1.5 to $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 $250 to $300 million. With Thursday's forecast, Caterpillar new "expects its full year adjusted operating profit margin to be near the bottom of the target margin range."

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