Caterpillar, Deere count the costs of tariffs as soft demand limits pricing power

(Reuters) -Industrial machinery makers are being battered by steeper costs from U.S. President Donald Trump's sweeping tariffs, with sluggish demand and high interest rates leaving little room to pass those expenses onto customers. Caterpillar and Deere, both sector bellwethers, have flagged hefty tariff-related hits this year, most of which they expect to absorb in the coming months as policy shifts keep markets on edge. Global companies that reported between July 16 and August 14 projected a combined financial hit of $14.2 billion to $15.8 billion for the full year, the Reuters' tariff tracker shows.