To what products does this logic not apply? What do you consider "domestic"? This sounds like an argument against the whole idea of trade in the abstract[1].
The basis of the theory of trade, frankly the whole point of trading at all, is that some people can make or get stuff more cheaply than other people, and that by "trading" those items with people who need them for stuff we want we all win.
I mean, fine. If you don't believe macroeconomics, I guess I can't do anything to convince you. Just recognize that, well, you sound absolutely crazy. This is flat earth scale nuttery.
[1] It's not, of course. And the "domestic" is the giveaway. You don't like foreigners getting uppity, and you're willing to comparatively impoverish yourself to keep them down. I, for one, am horrified at the oppressive antics of the PRC but still think that the last few decades of growth are a good trade relative to the literal famine of the 60's.