Much of the focus of the tariffs discussion has been on inflationary and revenue-generative effects, but the real damage to the US economy stems from their ability to curtail profitable business, just like a constantly changing set of damaging regulations. Can new manufacturers guarantee they can secure steel and other components at a reasonable price or is it too risky to start a production line? Is it profitable for a retailer to sign a long-term contract for imports if they cannot have any idea of their margin or final selling price?
And...
Similarly, the clampdown on migration and undocumented workers may address the fear some Americans feel of others, but it hurts labour supply and economic growth. Some of the weakness in US housing starts and new building permits might be the result of restrictive interest rates, but it is just as likely to be caused by shortages of labourers.
When we, other than Americans at large, think of the US, we think of the most vibrant and dynamic economy that is the heaven for talent. Undoubtedly it's been the same according to the people I know have migrated to the US for whatever type of jobs.
I agree from what I can see that tariffs and now the H1B rule both will snatch away this attribute instantly, if the talent, or the companies start to move away.
Actions have reactions and I'm already hearing that IITs, the biggest talent provider to US tech companies, will be considering to disallow on campus hiring by the tech giants for the USA if they go below the average salaries.