Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTWajeeh KhanThu, June 4, 2026 at 5:58 PM GMT+2 2 min readCaterpillar (CAT) shares extended gains on June 3 after the White House slashed Section 232 tariffs on bulldozers, forklifts, and agricultural equipment from 25% to 15%.According to the presidential proclamation that President Donald Trump signed earlier this week, the tariff reduction will take effect on June 8 and will remain in force through the end of 2027.More News from BarchartDear Amazon Stock Fans, Mark Your Calendars for June 23BNP Paribas Initiates Coverage on CoreWeave. That Means CRWV Stock Could Soar 71% from Here.Super Micro Computer Just Unveiled the New AMD Helios Platform. What That Means for SMCI Stock.Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!Caterpillar stock has been a rewarding investment this year currently up more than 50% versus the start of 2026.www.barchart.comWhat the Proclamation Means for Caterpillar StockCAT shares rallied because the company’s core products – bulldozers, forklifts, heavy construction machinery – are explicitly named in the proclamation.The administration also lowered tariffs to 10% on foreign-made products that contain at least 85% of U.S.-produced steel, aluminum, or copper; a threshold Caterpillar is well-positioned to meet.Together, these cuts relieve a key cost pressure. Many farmers and construction operators had been postponing major equipment purchases amid elevated input costs and trade uncertainty.For Caterpillar, this meant a demand drought that directly suppressed its order flow.Lower tariffs reduce equipment price inflation for end customers, which experts believe will boost deferred buying and bolster CAT’s already strong (despite suppressed order flow) backlog.CAT Shares Stand to Benefit From AI BuildoutsThe tariff tailwind arrives on top of an already compelling fundamental story. In the latest reported quarter, Caterpillar came in handily above Street estimates, with significant contributions from all three major business segments.Meanwhile, the engineering equipment giant’s enterprise backlog also came in up an exciting 79% on a year-over-year basis to a record $63 billion in its fiscal Q1.A key structural growth engine is Caterpillar’s “Power & Energy” segment where robust backlog growth is being driven by rising power demand tied to data center buildouts for cloud computing and generative AI.Note that Caterpillar shares also currently pay a dividend yield of 0.65%, which makes them some-what more attractive to own in 2026.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info