yes, suppliers for the U.S. (in China) might have to face competition from other countries where the wages aren't quite slave-wages, and the the local gummint does NOT own the businesses [and grant special favors/breaks/whatever for the oligarch that owns/runs it].
The USA (and probably most of the rest of the world) will see a minor hiccup in their economy, if anything at all. Some prices will go up a bit. Suppliers and manufacturing in "other than China" will pick up the slack and get contracts China companies WOULD have had. That's pretty much what will happen, yeah. Looking forward to it! I know all too well what they're doing over there [having seen an example of a violated copyright/patent product made from stuff being made their under contract for a U.S. company, and that "4th shift" component that looks as if it were made from a plan created using X rays on the finished product, complete with the company logo etched into it - an OBVIOUS plagiarized clone!]