Caterpillar Stock Drops as China Levies Tariffs in Retaliation

Takeaways

• Caterpillar shares fell Friday, extending Thursday's losses after President Trump announced sweeping tariffs on goods from countries all over the world.
• China responded to Trump's tariffs with a 34% duty on U.S. goods starting April 10.
• The construction company has a global presence and is considered an indicator of economic growth and contraction.

Caterpillar’s (CAT) stock fell on Friday amid concerns about the impact of retaliatory duties on the company’s global construction footprint. 

Caterpillar’s shares have fallen more than 5% since the recent trading session after China announced that it would implement an import duty of 34% starting April 10 on goods imported from the U.S., matching the tariffs announced by the Trump administration on Wednesday. Caterpillar stock prices dropped by 5% on Friday, extending losses from Thursday. Shares have fallen 13% over the last two trading sessions. 

The construction company has manufacturing and distribution centers all over the world, including China. It is widely regarded as a bellwether for domestic and global economic growth or contraction. Since the beginning of 2025, shares have fallen by nearly 20%. 

Caterpillar’s fourth-quarter fiscal revenue was below Wall Street’s expectations in January. Caterpillar attributed the slowdown to its construction industry segment.