If they currently have a 5% margin and their costs go up, they either
1) Go bust
2) Increase prices
This isn't a situation where supply is constrained (say in housing), where you will charge the same no matter the costs. If you charge too much then a competitor will increase supply and undercut you and you lose business.
Tarrifs means that your competitor can't undercut you, until it becomes cheaper to build entirely in the US, which will me far higher tarrifs and far higher prices that the end consumer pays.
1) Go bust
2) Increase prices
This isn't a situation where supply is constrained (say in housing), where you will charge the same no matter the costs. If you charge too much then a competitor will increase supply and undercut you and you lose business.
Tarrifs means that your competitor can't undercut you, until it becomes cheaper to build entirely in the US, which will me far higher tarrifs and far higher prices that the end consumer pays.
Market forces work both ways.