Brazilian assets saw volatility spike as traders rushed to assess the endgame of President Donald Trump’s threat to impose 50% tariffs on all goods from the South American nation.

Brazilian President Luiz Inácio Lula da Silva has said he is ready to match any tariffs imposed on Brazil by the United States. Lula was responding to Wednesday's threat by his US counterpart, Donald Trump,

It shows that personal grudges rather than simple economics are a driving force in the U.S. leader’s use of tariffs.