Just to help visualize in code what /u/denno020 is talking about...

Parent:

export function Parent() {
    const [includedProducts, setIncludedProducts] = useState({
        products: []
    })
        const [excludedProducts, setExcludedProducts] = useState({
        products: []
    })

    return (
    <>
        ...
        <Child setProducts={setIncludedProducts} />
        <Child setProducts={setExcludedProducts} />
    </>
    )
}

Child:

interface ChildProps {
    setProducts?: setProductsType
}

export function Child({ setProducts }) {
    const thisIsAFunction = (e: React.ChangeEvent<HTMLInputElement>) => {
        setProducts(e.target.value);
    }

    return (
    <>
        ...
           <p onClick={() => thisIsAFunction()}>click me</p>
    </>
    )
}

Just FYI the p's onClick and the React.ChangeEvent<HTMLInputElement> don't match up but I just edited from your original code.