How do I publish a custom React hook written in Typescript to npm?

I have written a React hook in Typescript and would like to publish it to npm, but I can't seem to get the build configuration correct. I'm not using any other build tool besides tsc. I have read the recommendations in the Typescript docs, React docs, and a few blog posts.

I don't get any errors when I build and publish, but when I try to import the module in another project I get an error importing React. Yet everything I've ready suggests that react should be a peerDependency when publishing custom hooks.

Cannot find module 'react' from '../useMyHook/build/index.js'

• tsc: v4.1.3
• react: v16.14.0

Repo: https://github.com/raineorshine/use-swipe-to-dismiss

tsconfig.json:

{
  "compilerOptions": {
    "allowSyntheticDefaultImports": true,
    "declaration": true,
    "esModuleInterop": true,
    "module": "esnext",
    "moduleResolution": "node",
    "strict": true,
    "target": "es5",
    "outDir": "./build"
  },
  "include": ["src"],
  "exclude": ["node_modules", "**/__tests__/*"]
}

package.json (abbreviated):

{
  "name": "useMyHook",
  "version": "0.1.0",
  "files": [
    "build/**/*"
  ],
  "main": "build",
  "scripts": {
    "build": "tsc",
    "prepare": "npm run build"
  },
  "peerDependencies": {
    "react": ">=16.0.0",
    "typescript": ">=4.1.0"
  },
  "devDependencies": {
    "@types/node": "^14.14.21",
    "@types/react": "^17.0.0"
  }
}

index.ts (abbreviated):

import { useState } from 'react'

const useMyHook = () => {

  const [x, setX] = useState<number>(0)

  return {
    onClick: () => {
      console.log(x)
    }
  }
}

export default useMyHook