No it wouldn't. It would only scan photos you upload to their cloud.
"This feature only impacts users who have chosen to use iCloud Photos to store their photos. It does not impact users who have not chosen to use iCloud Photos. There is no impact to any other on-device data."
and
"Does this mean Apple is going to scan all the photos stored on my iPhone? No. By design, this feature only applies to photos that the user chooses to upload to iCloud Photos, and even then Apple only learns about accounts that are storing collections of known CSAM images, and only the images that match to known CSAM. The system does not work for users who have iCloud Photos disabled. This feature does not work on your private iPhone photo library on the device."
- https://www.apple.com/child-safety/pdf/CSAM_Detection_Techni...