Caterpillar warned on Tuesday U.S. tariffs would pose significant challenges in the second half of the year and cost the construction equipment maker up to $1.5 billion in 2025. Sweeping tariffs have pushed up costs across the company's supply chain as it imports crucial components including sensors for its products,

Shares of the company, often viewed as bellwether for the industrial economy, fell about 4% in premarket trading after it also flagged a tariff impact of $400 million to $500 million in the third quarter.