President Donald Trump's executive order from July 30 affects about $1.7 billion in annual Brazilian chemical exports to the U.S., while exempting only five products, which represented $697 million in sales to the U.S. in 2024.

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.

Latin America’s biggest economy can weather the shock of a high tariff rate. But American coffee lovers and Brazilian ranchers are likely to feel the pain.