Based on the information that you are providing it sounds like your son may Balanitis. Balanitis can be caused by infection or the use of harsh soaps. Balanitis can be treated with antibiotics in either a pill or cream form. With the proper treatment it disappears entirely and the individual the vast majority of the time does not suffer any long term impacts. It is very likely that you do not need to take him to the emergency room, because you are in the United States, they will likely attempt to pressure you into having him circumcised even though it is almost always completely unnecessary to treat balanitis. Even though you may want to avoid antibiotics, they are very useful and important for treating balanitis and I would recommend contacting his doctor or someone else that can properly diagnose him and provide you with the treatment necessary.
I have very little doubt that your son will recover from this completely fine, even though this may be scary for you, you should calm down as antibiotic treatment has a very high success rate.
Good luck to you and your son.
Also, forced retraction is effectively never necessary and anyone who recommends it clearly is uneducated about the foreskin. This information is taken from the doctors opposing circumcision website.
Forced retraction is only rarely defensible. Inguinal hernia, undescended testicle, hydrocele, and varicocele can all be addressed without forcible retraction. The penis should be repositioned for any necessary intervention with sterile tape, not by inserted hemostat. Catheterization can be done by 'feel,' without retraction. Only in the instance of significant hypospadias or epispadias (congenital malposition of the urethral opening) might retraction be necessary and even then only if it is unavoidable collateral damage for which there should be specific follow-up care.
You can read more about forcible retraction here: http://www.doctorsopposingcircumcision.org/info/info-forcedretraction.html