The US isn’t competing with China.
Trade is not zero-sum.
The problem for American manufacturing isn’t the low cost of labor for overseas workers. Someone who earns $50 an hour can be a better bargain than someone making $5 an hour, based on relative productivity.
The problem is the FedGov spending and regulation, strangling the ability of companies to earn profits. Someone who might consider starting a factory declines after counting the cost, and realizing that he would make less money than he would by remaining employed by his current company.
The tariffs won’t drive the large companies out of business, but rather the smaller firms that are operating on the margin. The owners of these smaller firms will eventually realize that being your own boss isn’t worth the hassle of dealing with government, so they will close down, sell out, and move on. Less competition usually means higher prices and lower quality.
Trump isn’t doing tariffs for economic reasons, but for political reasons. If he really wants to restore American manufacturing, he would first cut Federal spending to the bone. He’s got DOGE doing a little trimming here and there, with some dramatics (like shutting down the Department of Education), but he needs to reduce Federal spending by trillions.
I think the problem is that, since Congress refuses to use good accounting, it is extremely difficult to find out where the money is going.
Cutting Federal spending is politically unpopular. Tariffs are (for Trump’s base, at least) extremely popular, because of the misunderstandings people have about trade.