What about those retaliatory tariffs?

Question:

I understand how tariffs we impose hurt our own people. But wouldn't the same hold true for retaliatory tariffs by China? Since they charge us more it would cost their people more?

Answer:

Tariffs by the US hurt Americans, somewhat, when they want to purchase imported goods (because tariffs are akin to a tax on imported goods). I say, somewhat, because the entire added cost of the tariffs need not get passed on to the final consumer: companies may have to absorb some of the added cost by cutting profits. When China retaliates with tariffs on US products, it hurts the Chinese consumer in the same way. But, it also hurts American companies who are trying to sell their products to China. In short, higher tariffs (and retaliation) hurts both American businesses (exporters and importers) and hurts the American consumer of imported products.