The financial impacts from the Trump administration's tariffs is reaching at least one industrial giant -- and Wall Street is reacting.
Construction equipment-maker Caterpillar's stocks plunged around 10 percent Tuesday after its 2018 outlook didn't quite meet investors' expectations.
That's in part because the company noted in its third quarter earnings report that it'll have to raise costs due to higher material prices, thanks to the implementation of U.S. steel and aluminum tariffs.
Here's why Wall Street is concerned: according to Bloomberg, Caterpillar is considered an "economic bellwether," meaning it could indicate potential trends in the market.
To be clear, Caterpillar's third quarter financial results were strong, but the expenses are what prompted the worry.
The company says for the fourth quarter, it'll focus on raising prices and curbing spending to try to offset the material price increase brought on by the president's trade policies.
Additional reporting from Newsy affiliate CNN.
