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.

A recent poll shows Brazilian President Lula da Silva's approval rating exceeding disapproval for the first time in nine months amid tensions with the U.S. over tariffs and sanctions against Lula's rival,