My friend @trazkp, you raise an interesting analysis of the US-China trade war, highlighting how tariffs affect US consumers more than Chinese exporters. While you mention that ‘tariffs are a tax on the buyer’, you omit to elaborate on how this dynamic could incentivise the relocation of strategic industries to the US, although you acknowledge the short-term challenges. Your proposal that the rest of the world (RoW) should raise prices to take advantage of tariffs is unrealistic, as it could accelerate the loss of global competitiveness. Moreover, he underestimates the weight of the dollar as a reserve currency, which is difficult to replace quickly. Your vision seems idealistic, but faces practical limitations. Only time will tell.
Global competitiveness is surrounded by competing for what is largely a single market. Redistribute and incentivise consumption in other markets, and there is still competition, but the US can't compete in a lot of it and maintain their current salaries.
When it comes to the reserve currency using the US dollar, there has been increased pressure for a long time, and over the last few decades, it has gone from 85 percent of the reserve to 54 percent or so. The reserve is only useful when it is reliable and relatively stable, and if the rest of the world enact production supply costs, that won't be the case.