Brazil President Luiz Inacio Lula da Silva’s defiant response to Donald Trump’s 50% tariff threat was validated Wednesday — at least in the short term — with markets and businesses breathing a collective sigh of relief at the long list of exemptions to the levies.

President Luiz Inácio Lula da Silva has signaled a firm stance in response to President Donald Trump’s threat to impose sweeping 50 percent tariffs on Brazilian goods, set to take effect August 1. The tariff announcement explicitly linked to Brazil’s ongoing criminal trial of ex-President Jair Bolsonaro sparked strong pushback from Brasília.

Brazilian President Luiz Inácio Lula da Silva says that his government has not been successful in trying to negotiate the 50% tariff on Brazilian imports that U.S.