Earlier quoted context omitted.
Unless I remember it incorrectly, GDPR doesn't even apply to websites that don't target EU citizens; so it really doesn't affect US websites that are clearly aimed primarily at the USA, just because some EU citizen might use it as well. And if a foreign website wants to expand into the european market, then yes, no matter its country of origin, it will have to follow EU rules. So, in conclusion, geoblocking the EU is…
It’s a bit more complex than that. Are they doing business at all in the EU (for a news site, do they have correspondents in the EU?) are they selling extras to the EU (can you pay for no ads, can you buy and they will ship merch to the EU?).
Yes, there's nothing wrong with that. If you take money from EU citizens, then you can be expected to treat at least them in accordance with european standards. If you don't like it, then we don't want your busyness, as simple as that (even though that might not be the position of every citizen, it's essentially what GDPR states)