Instead of stepping up as responsible global economic actors, the US and China are locked in a destructive cycle that's hurting everyone else. Washington's tariff strategy is pushing Beijing further into aggressive export plays, while simultaneously triggering protectionist backlash across developing economies. It's a lose-lose spiral—each move compounds the costs for the rest of the world. When trade wars escalate like this, capital flows get messy. Investors scramble to find safe havens, volatility spikes, and emerging markets feel the squeeze hardest. Understanding these macroeconomic currents matters if you're navigating crypto and DeFi positioning in uncertain times.