“Besides, those goods could be sold elsewhere..”
How do you create markets out of thin air?
If we sell 100 billion widgets to the world and Mexico buys 10 billion widgets, but then stops buying our widgets, we then only sell 90 billion widgets.
However many jobs it takes be produce 10 billion widgets are lost.
Increased supply means decrease in price. The price reduction will increase demand. Maybe not fully replace the current demand but almost. But maybe it will totaly match current demand.
The measures they can try to impose on us would be like a bee sting.
The stuff we can do to them would be like a bullet through the heart. We can take down their whole society whenever we want.