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.

Brazilian President Luiz Inácio Lula da Silva has hit back against Donald Trump’s looming 50% tariff threat, declaring Brazil will negotiate as a sovereign nation and not submit to intimidation. Lula warned against letting prosecution of Bolsonaro dictate economic decisions.