I learned in Econ the principle of substitutes and price. When a good or service’s price is too high relative to the value to the consumer, the consumer will search for substitutes.
In this instance the price of dealing with China is too high compared to the value received. I am fairly certain that there are countries in that region that would make excellent trade partners on more favorable terms than China offered. Those countries, I suspect, are already becoming a substitute for China. The longer this goes, the less likely China will be able to unring the bell, so to speak.
Bring it back to the USA. We have free trade between the 50 states. Americans need to work too.
“Better off with the tariffs.”
“The longer this goes, the less likely China will be able to unring the bell”
That is the big picture.
In the meantime, there will be lots of small movements and statements, to try to calm markets, or tactically delay some impacts (like possibly delaying the new tariffs scheduled to start on 1 Oct, just before “talks”).
But ultimately, we need a secure supply chain outside of communist control, and to rebuild our domestic capacity.