Caterpillar reported 4Q 2018 earnings that were 15.3% below analysts’ expectations. While a variety of factors were to blame CFO Andrew Bonfield stated tariff-related cost increases were part of the problem. Costs of just over $100 million in 2018 could equate to 2.5% of the group’s pre-tax profits in 2019. The firm’s U.S. seaborne imports from China fell 11.0% on a year earlier, continuing a trend seen since U.S. tariffs were first increased in July. Mr. Bonfield has also said the firm’s outlook “doesn’t see a rate change in the tariffs”, a stance that comes with two risks. First is tha...