A political storm has erupted between Brazil and the United States after Supreme Court Justice Alexandre de Moraes was hit with U.S. sanctions. Moraes is overseeing the trial of former president Jair Bolsonaro,

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.

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.