FRANKLIN, Tenn. — Carlstar Group L.L.C. will increase the price of its steel and aluminum wheels and steel components by up to 18 percent, blaming the federal government's imposition of import tariffs on the metals for the price hike.
President Donald Trump imposed a 25-percent tariff on steel articles and 10-percent tariff on aluminum articles, effective March 23. Some products produced in certain countries are exempt from the tariffs.
"The significant volatility we experienced in the prices of steel and aluminum materials since January 2017 due to supply constraints is now being compounded by the recent announcements on steel tariffs," Carlstar CEO John Salvatore said.
"This price increase is to recover from material increases we have experienced during these unprecedented market conditions."
Carlstar also cited escalating materials costs since early 2017 for decision to raise prices.
Carlstar said it will continue to closely monitor the material dynamics and market conditions.
The Franklin-based company's wheels are sold under the Cragar, Black Rock and Unique brands.
