Key Takeaways

Caterpillar ( CAT ) shares fell Friday amid concerns over the impact of retaliatory tariffs on the company’s global construction footprint.

Caterpillar shares slid more than 5% in recent trading after China's finance ministry said it would implement a 34% import duty on goods from the U.S. starting April 10, matching the tariff on Chinese goods announced by the Trump administration late Wednesday. Friday's drop in Caterpillar's stock price extends losses Thursday, with shares down 13% over the past two sessions.

The construction company operates manufacturing and distribution centers around the world, including in China, and is widely considered a bellwether stock as a proxy for domestic and global economic expansion or contraction. Since the start of 2025, its shares are down nearly 20%.

In January, Caterpillar had posted declining revenue year-over-year and missed Wall Street’s expectations for its fiscal fourth quarter, reporting a slowdown in its construction industries segment.

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