Make sure to distinguish between ‘tires’ and ‘wheels’ in your statements since they are different.
If you put them on a vehicle, their ‘logic’ could make the tires seemingly not stolen anymore. That’s absurd, but they mentioned it.
Before things escalate, return the wheels and get a receipt or video proof. It’s wise to have documentation of the return.
Unless they pursue charges, it’s best to return the wheels to avoid any potential issues.
Communicate with the police station to clarify if they actually called you.
Simply putting your tires on another truck could align with their logic.
Consider cutting your losses and moving on from this family issue; there will be other tires.
It might be easier to just return the tires. If the action escalates, you can pursue compensation through small claims.
Return the wheels, then file a small claim against them. You might avoid charges but not the stress.