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Trump tariffs could cost Caterpillar $200 million

Caterpillar, the equipment giant that's building a headquarters for its mining division in Tucson, said Monday that tariffs recently imposed by the Trump administration could cost the company $100-$200 million just in the second half of 2018.

While revenues were up 24 percent in the second quarter of the year, over 2017's numbers, the tariffs on imported materials are expected to impact Caterpillar's annual numbers.

The company said Monday that it is raising its forecast of revenues and operating profits, but "recently imposed tariffs are expected to impact material costs in the second half of the year by approximately $100 million to $200 million, and the company expects supply chain challenges to continue to pressure freight costs."

The company, reporting second-quarter revenues of $14 billion, said it would work to offset the impacts of the tariffs through price increases and operational efficiencies.

"For certain applications, particularly in oil and gas and mining, the company is seeing strong demand and taking orders for delivery well into 2019," company representatives said.

While the heavy equipment manufacturer has been closing plants and delayed building a new global headquarters, the company is building a new divisional HQ in Tucson, and has been adding about 600 jobs to its workforce here.

Caterpillar announced its move here in 2016. The company, which already employed about 300 at its local proving grounds, is adding about 600 employees as it creates an office for its surface mining and technology operations here. The office is being built on what was a vacant Rio Nuevo-owned lot south of Congress Street, next to Cushing Street on the West Side.

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