A country imposes a tariff to increase the cost of imports of similar goods which are being produced at home due to higher local costs such as higher wages, higher rentals, and higher quality such as tighter QC. Tariff gives the local industry a chance to survive or grow.
The country on whose exports tariffs have been imposed may want to retaliate by imposing tariffs on imports from the first tariff-imposing country. It is not likely that it will be on the same products but probably products which are competing locally or even not.
The end result is that prices of goods and services will rise in both countries on all things with tariffs imposed. There are other consequences. Tariffs are usually imposed with times are tough for local industries. This means higher prices with probably slowly growing demand. These tariffs suck up purchasing power from the local economy into government coffers and this comes in handy as governments are suffering huge deficits around the world. The net impact is smaller quantities consumed and hence production cut.
Economic recession is inevitable, even if tariffs were originally imposed to restructure global economic balance.
Economic restructuring usually means some industries will die and new ones come up.
The current global economic problem is something that is waiting to happen and we were not so sure how that was going to happen. This round of tariff imposition among trading countries is surprising but anything could have happened to trigger a global adjustment. For sure, this also means that the US is unlikely to print more money and so we should see a sharp drop in global liquidity and a massive contraction around the world, hitting real estates and banks.
What is happening is something we have been expecting - a massive adjustment in the global economy. A slowdown and recession will take place in the next few years, and it will be sad to see the economic adjustment and deterioration descending into military warfare.