Why do you believe military allies are more likely to trade with each other? Neutral countries are open to trade with everyone, and there is no direct link between trade and military alliances. Correlation of trade and defense agreements is not evidence of a causal relationship. However, military agreements do directly result in embargoes and blockades of nations, which is antithetical to free trade.

The free market does not "love" any particular business model or supply chain by default. It just means various individuals and voluntary associations are free to find what works and change as needed without political intervention.

Regional specialization and trade are beneficial to everyone. Imagine of Canada mandated only Canadian-grown citrus fruit could be sold in Canada for an extreme example of why economic nationalism is dumb. Yes, most of the world's chips are made in Taiwan, but you may want to look at the many anti-market factors which also pushed manufacturing overseas. Taxes and regulatory pressures played a major role in making domestic manufacturing untenable in the US, and new subsidy schemes or mandates do not restore sustainability, they add chaos.

The US became wealthy through freer markets and freer trade, and only this wealth created by market action made the Leviathan State parasite possible. It is now killing its host, and military expansion with pointless wars is one of the key indicators of a dying empire.