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No the reason is that Lego is an "overseas" company. From a country with much better regulation than USA on all counts, from environmental protection to workers rights.
But apart from that Lego has a huge factory in Virginia, so there absolutely is local production in USA.
https://www.tvsyd.dk/billund/lego-bygger-endnu-en-milliardfabrik
Lego has 7 factories in:
Danmark (Billund)
Hungary
Mexico
Shanghai
China
USA
Vietnam
So you could say almost 30% of their factories are in North America, and the majority of the factories with 4 out of 7 are in the "Western" world.
Edit:
Oh and production was moved overseas, but not away from USA, but on the contrary TO USA.