Or tax incentivize final manufacture of finished goods in the US for high value and strategic goods (semiconductors, electronics, mechanical equipment, chemicals, pharmaceuticals, agricultural equipment, etc.)
Make a policy like,
"""
Companies that onshore will pay the following taxes
for the next 25 years if they follow our onshoring
program:
company profits: 0% tax rate
CEO capital gains: 1% tax rate
shareholder capital gains: 2% tax rate
Also, companies can transfer international profits
back to the US at a rate of up to $10B a year with
no taxation.
"""
First make it apply to 10% or some low critical threshold of products, but then ramp it up annually. Over ten years, the percentage should be closer to 50% for companies to remain in compliance and to receive the tax advantaged status.
Don't punish China and make them angry. Reward US manufacturing activities handsomely.
Call your legislators and ask for this. They'll be into the tax thing.
An interesting side effect: companies that manufacture in the US will be worth significantly more. They can use their valuation to make continued investments: loans, acquisitions, hiring, etc.
Perhaps a new trade agreement could be made amongst key trading partners? China would probably get mad, but if China is able to keep foreign firms out or put them at a disadvantage, then we should be able to provide benefits to our own domestic firms.
There need to be motivations for companies to do more on our own soil.
