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.

Washington has wielded the threat of 50% tariffs against Brazil to influence the Brazilian judiciary, condemning what it calls a 'witch hunt' against former far-right President Jair Bolsonaro.

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.