Shares of Caterpillar Inc. CAT, -0.12% slumped 1.2% in morning trade Friday, enough to pace the Dow Jones Industrial Average’s DJIA, +0.62% decliners, as the first round of tariffs between the U.S. and China went into effect. Meanwhile, the Dow was up 6 points. Caterpillar has a lot to lose in a escalating trade war, as 59% of the machinery maker’s revenue in 2017, 2016 and 2015 was from overseas. In 2017, 57% of Caterpillar’s 98,400 employees were outside the U.S. And in the company’s latest report, among the risks to its business that Caterpillar listed were the imposition of “burdensome tariffs” or quotas, changes in trade agreements and the imposition of new trade sanctions by the U.S. or foreign governments. The stock has shed 6.2% over the past three months, while the Dow has gained 1.8%.
Caterpillar's stock falls to pace Dow decliners as trade war worries heat up
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