Caterpillar received a $392 million tariff refund during the second quarter. The payment stems from a successful legal challenge to tariffs imposed under the International Emergency Economic Power Act (IEEPA). This recovery served as the primary driver for the company's better-than-expected profit margins during the period.
The manufacturer still incurred approximately $400 million in other tariff-related costs for the quarter ending June 30. Management forecasts that total tariff expenses will reach $2.2 billion for the full year of 2026. This annual projection excludes the impact of the one-time IEEPA recovery.