It's one thing to block some random .gov site unused for anything else, it's another thing to block a domain used for, say, filing flight plans.
(The flight plans get passed between countries via AFTN/AMHS, which are dedicated telecommunications networks independent of the Internet.)
There's also several different ways to transmit the passenger manifest to CBP - including over a CBP-provided VPN and IATA "Type B" messages sent through ARINC/SITA.
The network for Type B messages is also independent of the Internet (it was developed 60 years ago).
Southern European countries are blocking whole Cloudflare IP ranges because of the massive grip on the government the sports licensing maffia has there. These countries also don't feature any direct flights to America as far as I can tell.
These blocks may cause (temporary) issues for American business relations and tourism, but such side effects may not be considered so problematic if the US leverages their government infrastructure to attack European legislators.
You are correct that if they only blocked it for consumers, it would be less of an issue, though that would be difficult for mobile providers.