Caterpillar Battles Tariffs as Power Generation Demand Remains Strong

The monthly American factory survey showed machinery still expanding for an eighth consecutive month. The survey highlighted that Caterpillar, a leading manufacturer of heavy equipment and engines, is facing increased tariff pressure while demand for power generation equipment remains firm.

Caterpillar has reported a 'materially heavier' tariff burden for the year. Despite this, the company's energy and transportation business continues to grow due to strong demand for data center construction and reciprocating engine orders.