So where do the increased tariffs paid by the importers go?

It goes in to the pockets of the Harper government, of course. To the tune of $335 million per year.
When the Canadian government collects more money from Canadians, in any form, it is a tax. To call it anything else or deny that it exists is dishonest.
Bicycles, tricycles and wagons; children's toys; cancer-victim's wigs... almost 1,300 products from 72 countries; these are not luxury items afforded by the rich. These are all-class items purchased by Canadians.
It is a pretty sad day for Canadians.