Home / Business and Economy / Caterpillar Faces $1.8B Tariff Hit, Cramer Warns "Too Early" to Buy
Caterpillar Faces $1.8B Tariff Hit, Cramer Warns "Too Early" to Buy
5 Sep
Summary
- Caterpillar stock up 15% YTD despite construction industry sluggishness
- Cramer warns tariffs could cost Caterpillar $1.8B, higher than previous $1.5B estimate
- Cramer cautious on Caterpillar despite potential benefits from data center construction
As of September 5th, 2025, Caterpillar Inc. (CAT) has seen its stock gain 15% year-to-date, despite broader sluggishness in the construction industry. However, according to financial commentator Jim Cramer, it may be too early for investors to buy the stock.
Cramer has discussed Caterpillar several times on his morning show this year, and he believes the company stands to benefit from the significant growth in US data center construction. However, Cramer has also highlighted Caterpillar's recent SEC filing, which warned that tariffs could make a $1.8 billion hit on the company's finances - higher than the earlier warning of $1.5 billion.
While Cramer acknowledges Caterpillar's potential, he remains cautious on the stock, noting that it has historically traded at a below-market multiple. Cramer also commented on a recent Morgan Stanley downgrade of Caterpillar, stating that while there are issues with the company, "we already know them."
Advertisement
Advertisement
Ultimately, Cramer believes that some AI stocks may hold greater promise for delivering higher returns and have limited downside risk compared to Caterpillar. He advises investors to consider these alternatives as they navigate the current market conditions.
