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.

The US also imposed a 50% tariff on Brazil after Trump accused it of "attacks" on US companies and of conducting a "witch hunt" against Bolsonaro.