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Here's a hard truth about trade barriers—they don't work the way their architects hope. When nations start slapping tariffs on imports, the domino effect hits fast. Consumers face higher prices. Businesses struggle with supply chain chaos. Investment dries up. And let's be real: both sides end up worse off.
The economic damage compounds when you zoom out. Global markets thrive on interconnectedness. Disrupt that flow, and you're not just affecting goods—you're strangling prosperity across the board. For crypto and blockchain ecosystems especially, this matters big time. Cross-border capital movement, international trading pairs, liquidity flows—all of it depends on stable, predictable trade relationships.
When protectionist policies kick in, uncertainty floods the markets. Institutional investors get nervous. Volatility spikes. Emerging markets that rely on international commerce face currency pressure. Even digital assets can't escape the ripple effects of deglobalization.
The uncomfortable reality? There are no real winners in a trade war. Just different degrees of losing. Economic interconnection isn't a weakness—it's the foundation of shared growth. Tear it apart with tariffs, and everyone's net worth shrinks.