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.

Trump has set a whopping 50% tariff on Brazilian goods - the highest rate levied by the US on a country thus far.

The order entails an additional 40% tariff on the 10% duties already being levied, but energy products would be exempt.