No one is going to say it but the (effective) end of the H-1B visa program means that tech companies are going to start staffing up more teams where the talent is.
You would need China-level capital controls to make this work and that is not compatible with the dollar remaining as a reserve currency. Nor will Congress or the Supreme Court go for it.
Epic handwave. And you're wrong btw. If anything small business outsources even more than large companies. Tons of small business owners have zero US employees but have a personal assistant/CX agent in the Philippines, IT contractor in Latam, design contractors in Eastern Europe, etc.
Perhaps it was less expensive to hire offshore, but if importing foreign talent isn't an option anymore, the tradeoff will change and US companies will have to expand their foreign offices (which I personally hope).