If you make it too expensive to outsource manufacturing, then those companies need to compete with other local companies.

Of course. But that's not what happening. F.e. iPhones completely made in China are accounted as "made in USA" and not fall under tarifs.

To counter this you would need robust breakup of monopolies.

Today it is nearly impossible to do anything with monopolies, unfortunately. Electronics and software made vendor lock and monopolisation even simplier than any time before.

Then we're back to natural cycles of consolidation, revolt, decentralization, repeat.

That's not right if civilisation can't develop without that cycles. Unfortunately nobody cares.