Brazilian goods imported by the United States will soon carry one of the highest tariffs imposed by President Donald Trump, but that will not likely derail Latin America's largest economy, due to ample exemptions and stronger trade ties with China.

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

The additional 50% tariff that the United States will impose on Brazilian imports starting Aug. 6 will only affect 35.9% of sales, meaning it will have a much lower impact than initially expected. Thanks to the nearly 700 exceptions that the US included in the tariff increase

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.

When U.S. President Donald Trump linked 50% tariffs on Brazil to the trial against his ally, the country's former far-right leader, Washington left Latin America's largest economy with few options to deescalate but may have overestimated the country's vulnerability to the levies.

President Donald Trump is back at the White House defending new tariffs set to take effect Thursday. Canada, facing a possible 35% tariff.

The second Liberation Day marked a decisive shift in America’s trade relations.