Caterpillar posted weaker-than-expected quarterly profit and warned U.S. tariffs could pose significant headwinds in the second half and cost the construction and mining equipment maker up to $1.5 billion in 2025.

US construction equipment manufacturer Caterpillar posted a drop in earnings and warned of a hit of up to $1.5bn from Donald Trump’s tariffs, in a sign of how trade tensions are impacting the global companies it makes machinery for.

The Swiss president will fly to Washington on Tuesday to “present a more attractive offer” on trade to the US government, following Donald Trump’s decision to hit the country with steep tariffs. Karin Keller-Sutter will fly for “short notice” meetings with US officials “with a view to improving the tariff situation for Switzerland”,

President Trump's 39% tariff on goods from Switzerland is among the world's steepest import taxes. For the European nation, the announcement comes at an unwelcome time.