AsianFin -- Komatsu is expected to see a 20 billion yen ($140 million) reduction in the financial impact of U.S. tariffs following last week’s U.S.-China trade truce, CEO Takuya Imayoshi said, suggesting that the Japanese machinery giant’s profit outlook may be less severe than previously projected.

The easing amounts to roughly a 20% reduction from Komatsu’s earlier forecast of a 94.3 billion yen tariff-related hit. With over a quarter of its sales generated in North America, the improvement could significantly cushion the company’s bottom line.

In an interview with Reuters on Wednesday, Imayoshi, who heads the world’s second-largest construction and mining equipment manufacturer, stopped short of saying the company would revise its earlier guidance, which projected a 27% decline in annual profit due to tariffs imposed by U.S. President Donald Trump.