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.

Brazil will pay as much as 50% tariffs on goods exported to the United States. But experts say the tariffs, along with sanctions on a Brazilian judge, indicate this isn't about economics but about Trump's politics.

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.