Ultimately, you get what you subsidize. Tariffs are very weak subsidies; they're more of a penalty for domestic end-users. Going directly to the subsidy would

Ultimately, you get what you subsidize. Tariffs are very weak subsidies; they're more of a penalty for domestic end-users. Going directly to the subsidy would get the government what it wants -- more steel, aluminum, or whatever -- and spare end-users the pain. Direct investment in small and nascent business is also a powerful lever. At trade shows, I've personally spoken with more than a few Chinese factory owners, and many of them mentioned that they got their start with an $_M investment by the government, and that the government is a minority shareholder in their business. This is how you get lots of factories in sectors you want to see, and you can force them into competition to keep end-user prices low. Just imagine the US doing this for drones, AI, mining and metals production, etc. It would be like mega-YC.