Nation states with unlimited amounts of money to print don't care about fees on the Bitcoin network. If they buy Bitcoin they buy in amounts that makes the fees not event a rounding error. And they print the fee anyway.

People who have been accumulating small amounts of Bitcoin at 1sat/vb might have to pay 5%, 10%, 25% or more to transact.

The higher the fee the more people are pushed out of self-custody. They either choose Liquid or LN custodial providers, or use other tokens.