I also like buying things made locally, restricting the aperture of a product's origin to its absolute smallest possible in relation to my residence. I've even found tools made in my state!
Whether or not you should try is up to you.
But it is possible. Companies CAN compete with low-wage low-regulation areas but usually only on the high end.
You can buy toasters from Ritter that are made in Germany and they retail for around $200.
After a very cursory search I found a 1939 Sears catalog that listed an old-fashioned (a heating element surrounded by A-frame to hold the toast) toaster for $0.89 and a "Deluxe Automatic Toaster" for $8.95. A "Deluxe Automatic Toaster" is the kind that everyone buys today with adjustable toasting and automatic pop-up.
$8.95 in 1939 is... $200.
So you might want to start by doing some research into what people might want in a product once the price trends towards the high end of the market. My gut tells me, just based my desires and products that are still successfully being manufactured in the US that simplicity, robustness, and repairability are all extremely high, and wifi-enabled smartshit is very, VERY low on the "want" scale.
Products like Vornado air circulators (dumb), Bunn coffee makers (dumb), and Red Wing boots (dumb) are all made domestically and have all been on the market for decades and cheap imports haven't killed them off yet-- and they are all simple, robust, and repairable.
So DO NOT TRY TO MAKE THE JUICERO OF TOASTERS.
Make a residential version of the Waring commercial toasters, something with good industrial design, simplicity, and repairability, made domestically (Waring moved production of their 4-slice toasters overseas long ago).
Someone who spends $350 on Red Wing boots is willing to spend that much because they WILL get them resoled.
Someone willing to spend $200 on a toaster probably attempts to estimate how long it will last, and is smart enough to know that a wifi chip or microcontroller is an unnecessary complication.
I work in a field that makes physical things, but not mass-produced things. One pitfall I have observed with software folks moving in to manufacturing, such as programmers getting an MBA and PMP and moving into management is that the amount of time and money it takes to actually make a real physical object is almost incomprehensible to them.
Also incomprehensible are the very real and very important quality control and safety components to manufacturing.
Of course, if you worked on software in a safety-critical field this is old news.