higher labor and materials costs leading to higher prices, leading to lower sales, leading to reduced revenue, leading to workforce reductions, leading to lower sales, leading to reduced revenue, leading to workforce reductions...
An efficient market prevents any sort of death spiral. The objective of a tariff, just like the objective of regulation, is to encourage/discourage a certain practice but that doesn't mean there aren't ways around them if they become overly burdensome. For example, when environmental regulations become too burdensome, outsource the job to a place where those regulations aren't present. This is why environmental laws can easily put American companies at an extreme disadvantage and should be carefully considered. A lot of the higher costs you are worried about are self-inflicted because of all the ridiculous overhead required to run a business now a days.
seems like there's a risk of:
higher labor and materials costs leading to higher prices, leading to lower sales, leading to reduced revenue, leading to workforce reductions, leading to lower sales, leading to reduced revenue, leading to workforce reductions...
ie a basic recession spiral.