How do retaliatory tariffs impact global supply and demand in the context of globalization?

Retaliatory tariffs are taxes that one country imposes on imports from another country in response to tariffs that the second country has already placed on its goods. These tariffs can lead to a decrease in global supply because they make imported goods more expensive, which can reduce the quantity of those goods that consumers are willing to buy. For example, if Country A raises tariffs on Country B's steel, Country B might respond with tariffs on Country A's cars. This back-and-forth can lead to higher prices for consumers in both countries and can reduce the overall demand for goods, as people might choose to buy less or seek alternatives. In the context of globalization, these tariffs can disrupt trade relationships and create uncertainty, making it harder for businesses to plan and invest.