How to increase country specific traffic???

Adding a country keyword will not work for a glabbaly sellable product, e.g no such thing as vibrators for America.

 

There are a variety of things to look at, including local link building and marketing, using Yahoo and Google local features, local directories, local bloggers, and (it may be too late for this) a country specific TLD, among other things.

I wrote about it in my blog (above). See links in Sig too.

 

find backlinks from US sites

 

To gain rankings in local SE , get backlinks from local sites and if posible local hosting

domain extension doesn't count

 

I would personally recommend using geo-targeted keywords. For example lets say you sell blue widgets, rather than targeting the keyword blue widgets, target "blue widgets california"? See what I mean... Also too depending on how local you want to get you can set the geographical location you want your search results to cater to in Google Webmaster Tools.

 

That's a good point. Alt text links with the region included would probably be helpful.

 

Why US sites?

 

The OP mentioned USA as an example, so the response was to get backlinks from US sites.

Basically, try to build backlinks from within the country or region that you are targeting.

 

Do offsite promotions in local directories, classifieds, business forums, you will get good results.

 

Yes, it all helps *see my blog next to my avatar.

There are country/region/city specific ways to promote yourself, your business, and your websites. So, what works in one area may not necessarily be available in another.

Take advantage of local online directories, including phone and business directories. Yahoo and Google Local work well.

Being hosted by a local webhost is usually helpful, but not necessary.

There's much more.