Brazil’s President forcefully rebuked Trump after the U.S. leader called the prosecution of Lula’s predecessor, Bolsonaro, a “witch hunt” and hiked tariffs on the Latin American nation.

The threatened measures against Brazil will add to the growing uncertainty and fears in financial markets as to where the tariff war is leading, causing further questions to be raised about the stability of the US dollar as the global reserve currency.

By Fabio Teixeira, Ricardo Brito and Luciana Magalhaes BRASILIA (Reuters) -Brazilian President Luiz Inacio Lula da Silva said he wanted to find a diplomatic solution to U.S. President Donald Trump’s threat of 50% tariffs on Brazilian exports,