What Is the Point of Retaliatory Tariffs?

Question:

I am nowhere close to an economist, so my question is perhaps silly, but it there is something I don't understand regarding the retaliatory tariffs imposed by Canada (my country) on US products in the wake of the US President imposing tariffs on our goods.

As I understand it, a tariff is a tax imposed on an imported product; a tax paid for by the importer, usually a business. This increase in purchase price is usually passed to the customer with a markup on the retail end. The point of a tariff is, generally, to increase prices in this fashion in order to encourage the purchase of local goods or products, or those from, in this case, the USA. If I am incorrect, please correct me.

My question is this: why retaliate with tariffs on US goods into Canada? Does that not just force us, Canadians to pay more? If the USA imposes tariffs on Canadian goods entering the US, that forces US consumers to pay more for Canadian goods. Some customers will switch to American made products, but not all. So why would the tariffed country then force its residents to pay more in 'retaliation'? It would seem to me that keeping the prices of American goods low while Americans pay more for goods in their country, would benefit Canada and Canadians.

Again, I am not an economist, and this question may seem quite naive, but the logic of retaliating with tariffs and thus forcing Canadians to pay more when it's the importers that pay the tax doesn't make sense to me.

Answer:

When Canada retaliates, as you observe correctly, Canadians pay more for American goods yes, but that action also hurts US companies trying to sell American goods to Canada. When the US imposes a tariff on Canada, the US is also hurting Canadian companies trying to sell their goods to the US. Retaliation is all about hurting each others companies in a tit-for-tat fashion. In the process, consumers of imported products in both countries suffer.