Keeping Our Head Above Water - Our Economy and Romney's Plan

With the Presidential Primaries in Michigan on Tuesday and Mitt Romney desperate for a win, he has been running television ads aimed at economic issues, a major topic due to economic woes in the State. Once known for its worldwide manufacturing prowess, the state home to the Motor City has not been faring well. The Big Three - GM, Ford, and Chrysler - have nearly bowed out to Toyota, a Japanese Auto Manufacturer. Because many towns were centered around production plants, the entire economy of many cities has gone awry. Coupled with oursourcing IT and other jobs, Michigan needs help. Romney calls for lowered taxes on big business and more incentives for innovation in order to compete in the global market. However, lowering taxes does not help a government plagued by War debt and may cause a reverse Tax War, where countries in Asia and US lower taxes continually in order to keep our businesses going overseas. Instead we should increase taxes on imports coming in.
While this may be bad for companies with plants in foreign countries, this will not only help our government, but also our economy.
First, it's obvious to see that raising taxes helps replenish government funds and that the only businesses taxed are those working out of cheaper countries. This would be a good way to make up for War debt as opposed to raising the income tax. In addition, if income taxes are raised to pay off debt, this could cause a decrease in spending and consequently hurt the economy.
However, this could cause a tax war, where the countries that export to America also raise taxes on imports coming to their country, causing some mixed effects. Because American demand needs to be filled, the loss of the foreign market would force consumers to buy American. An American company that sells steel to Japan for building Cars, for instance, would lose profits because increased taxes on Japanese Cars has lost them business. Conversely, the company would gain business from the increasing Auto industry in America, creating only more jobs in the American auto industry. Unfortunately, if countries whose goods we have raised taxes on, raise taxes on us, then American businesses, like agriculture, whose field of demand lies in those countries would suffer.
There would be ups and downs, but this would make American more independent, stop Asia and other countries from taking over our market, and ensure our government gets its fair share. While some businesses may be upset over the loss of the dirt cheap labor, this keeps the US market from competing with China's juggernaut labor force. Romney's plan would aid in this competition, but there is no security and our government would not be getting the funds it needs to repay its debts.
Note: I am hoping to write a small follow up on the possible effects of this plan on other countries.