Re: Market Dynamics – Tariffs and Oil Prices / Pricing Adjustment
 

 

To Our Valued Partners and Customers:
 

The ongoing conflict in the Middle East has created unprecedented volatility in raw material
markets. Poly-based material costs, which are the primary materials for all our products, have
risen sharply over the past weeks. In response, we have proactively secured inventory at elevated
costs to protect continuity of supply and avoid potential shortages.
 

In addition, the recent Supreme Court decision overturning the IEEPA tariffs has eliminated the
previous reciprocal tariffs on our products from Turkey and the Dominican Republic. These were
immediately replaced by a new 10% tariff under Section 122 of the Trade Act of 1974. As a
reminder, CargoTuff implemented a total price increase of 13.5% to offset the earlier tariff
structure.
 

After accounting for both the reversal of prior tariffs and the increases in raw material costs, the
final adjustment customers will see is a net price increase of 12%. This increase will apply to all
orders shipped after April 20, 2026. As always, we are committed to re-adjusting pricing as soon
as markets normalize.
 

We strongly discourage placing orders that are out of line with your traditional or forecasted
ordering patterns. Orders will be reviewed against historical data, and we will not be able to fulfill
quantities that significantly exceed normal levels. Our priority is to ensure consistent supply for
all loyal customers.
 

We appreciate your understanding and ongoing partnership. Please reach out to your
representative with any questions.
 

Sincerely,

 

 

 

 

 

Helmut Elze
Co-CEO