I live in Texas, which is still part of the USA, and we manufacture a great deal.

I have a friend who works as an environmental engineer at a chem plant. They work hard to keep things safe and clean, and rigorously monitor their output.

I'm sure we could do even more if we weren't competing in meany areas against legal jurisdictions which DON'T care about such things. We aren't "priced out". We are regulated out and out competed by jurisdiction which have many fewer labor laws and much more lax environmental monitoring. If we are out-competed on product, then we deserve to loose, which is where libertarians and free-trade have a point. But if we are out-competed on keeping people and the environment reasonably safe? That's when we enact trade barriers.

That is how you actually keep the environment and people safe.

This is what I don't understand?

We do manufacture things. Just not in California.

So why does it even matter if California bans manufacturing dangerous things? Who cares? Just manufacture it in some other state. As a bonus, you don't have to pay those high California taxes.

In what world is this a problem?