(Reuters) -Caterpillar ( CAT ) on Thursday raised its estimate of tariff-related costs for 2025, citing additional levies and clarifications, sending its shares down 3% in extended trading.

Sweeping tariffs have raised costs across Caterpillar's ( CAT ) supply chain, as the company imports key components such as sensors, even as manufacturers race to localize production.

Caterpillar ( CAT ) now expects a tariff hit of $1.5 billion to $1.8 billion this year, up from its prior forecast of up to $1.5 billion.

The heavy equipment maker also raised its estimate of third-quarter tariff costs to as much as $600 million, from a prior forecast of up to $500 million.