I think what is going to happen is, a lot of manufacturing will return to America from China, Mexico, Korea, Japan and everywhere else.
That will mean a lot of companies which sold out America will lose quite a (large) amount of money soon. That is true.
But it will be, because America will be making more of that stuff.
This will be very good for our economy. But companies which sold every thing to China, will lose quite a lot soon.
That will impact the markets, on balance, while the manufacturing is returning stateside.
But it will be very good for America.
The only way your scenario works is if the workers in America are willing and able to make products for a very low (relative to now) wage.
And, you need customers. If layoffs come in the millions, the people supporting the markets will disappear. This could be a deflationary depression—which would mean that prices are going to go down. Wages will also go down, on average.
In the end, this usually turns to a war somewhere.
I would love to believe what you say is going to happen. But I am a skeptic.
Only problem with things returning here is going to be the inflexible floor on labor rates. As it stands, they might work if the non citizen surplus is sent home...