Caterpillar warns: Trump tariffs will cost us up to $1.8 billion!

Caterpillar warns: Trump tariffs will cost us up to $1.8 billion!

In the USA, President Donald Trump's customs policy is causing rising costs and considerable uncertainty, which is also affecting companies in northern Germany. Caterpillar, a renowned construction machinery specialist, is faced with increased burdens due to the new import tariffs. The firm estimates it will need to raise between $1.5 billion and $1.8 billion (approximately €1.3 billion to €1.5 billion) in tariff costs in 2023, an adjustment from the previous estimate. When the quarterly figures were presented at the beginning of August, they were still between 1.3 and 1.5 billion dollars. The company's boss, Joe Creed, was concerned and announced that he wanted to minimize the negative effects of the tariffs, but did not name any specific measures. In the current quarter, Caterpillar expects tariff costs of $500 million to $600 million, up from the previous estimate of $400 million to $500 million, according to nordkurier.de.

But it's not just Caterpillar that will be affected by the new tariffs. In the USA, many small businesses are also forced to absorb the increased costs or raise their prices. Claire Landgraf, a bridal outfitter from Minnesota, reports that she gets 90% of her wedding dresses from China, where tariffs range from $100 to $500 per dress. Without direct price increases, customers are unsettled by the additional costs. Tim Sheehan, managing director of a fishery in Maine, sees the tariffs as an opportunity to dissuade customers from imported products. In the toy sector, Laura Miles in Maryland has already pre-purchased, but also plans to have to increase her prices to cover the increased costs. These developments illustrate how profound the changes caused by customs policy on the other side of the Atlantic are, as zdfheute.de shows.

A wave of uncertainty for German companies

US tariff policy is not just a burden for American companies. German companies are also increasingly feeling the effects. Since Trump took office in January 2025, the announcement of new tariffs on a wide range of products, including heavy import tariffs on steel, aluminum and cars, has created massive uncertainty. In April 2025, Trump decided on a general import tariff of 10% on all goods, followed by specific “counter-tariffs” for countries with high trade deficits, particularly affecting the EU. A tariff rate of 20% was announced, but was initially suspended, leaving many companies with little planning opportunity. As statista.com makes clear, the German export industry is severely affected because the USA is the most important trading partner.

The pharmaceutical, automotive and mechanical engineering sectors, which are heavily dependent on exports, are particularly affected. In the worst case, exports from Germany to the USA could collapse by almost 43% with a tariff of 25%. This could lead to overall damage to German exports of more than 3% and reduce gross domestic product by 0.2 percentage points. The uncertainty of tariff policy is identified as an inhibiting factor for economic growth, and the unpredictable approach of the USA remains a constant risk for all parties involved. While Trump's actions have sparked a trade war between the US and various countries, the question remains as to what the ultimate impact will be.