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.

Faced with threats of 50 percent tariffs and demands to end a criminal case, President Luiz Inácio Lula da Silva said he wouldn’t take orders from President Trump.

Brazil President Luiz Inácio 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.

In an interview with Jack Nicas of The New York Times, President Luiz Inácio Lula da Silva rejected President Trump’s demands for Brazil. Here’s how the United States and Brazil reached this point.

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.