As you may be aware, the US government has imposed import duties of 10% on imported steel, parts and products, and also a duty of 25% on imported aluminum. The duty on imported parts and products is to increased to 25% on January 1, 2019.
As a result, the cost of inputs required to make Kargo Master products, regardless of origin, has increased significantly. We have no choice but to increase the price of our products by an average of about 7% (some a little more and some a little less), and impose a duty surcharge of 5%.
This price increase will be effective on orders placed on or after October 15, 2018. The 5% duty surcharge will be effective immediately assessed as an invoice line item, and will be based on the value of the order. Of course, if the tariffs are reduced or eliminated, we will reduce or eliminate the surcharge accordingly.
The Kargo Master mission is and has always been to provide products of superior functionality and durability, at a very competitive cost. Please bear in mind that Kargo Master has not taken a significant price increase in over 3 years, while competitors have done so year after year, especially in 2018. We are committed to providing you, our valued customers, with the best value proposition in the industry. We appreciate your cooperation and understanding in these difficult times.
Thanks for your continued loyalty and support,