Why do you think that physical labor will become incredibly expensive if nobody has jobs? Do you think tools are that hard to get? Chinese tools are cheaper than ever.
There's a tension between "AI will take everyone's jobs" and "things will be expensive." If we lose our jobs to AI it will probably be because it has higher productivity, which will tend to make things cheaper - even if manufacturing needs to be onshored, if only because AI drives down the cost of labor.