US widget maker @ $2000.00 claims his widget is better that the $1000.00 widget you can get from China or Mexico.
He is probably right.
Lean manufacturing processes and automation, he now can make the worlds best widgets, with 1/3 to 1/4 the manpower he did 10 to 20 years ago.
Being local, he can take care of consumer issues and fix the situation with local customer service.
When tariffs are applied to make his competitors sell their widgets $ 2000.00, the US manufacturer will raise their price to more than $2000.00.
Why not? They are better than everyone else at it.
The US manufacturer still doesn't sell as many, but he sells them to exclusive high-end widget user.
This is the economic reality now.
Things are available in the US, if you want to pay for them.
If you can't, there are cheaper alternatives elsewhere.
Why will the US Widget maker raise his prices?
One reason is listed above, some will pay extra for the quality and service.
Also, he himself is a user of widgets, other widgets that are also subject to tariffs, besides the ones he makes, as are his employees, and they have to increase their revenue (and payroll) so they can still enjoy widgets, too.