Trump signed an executive order Wednesday to impose his threatened 50% tariffs on Brazil, setting a legal rationale that Brazil's policies and criminal prosecution of former President Jair Bolsonaro constitute an economic emergency under a 1977 law.

Brazilian President Luiz Inácio Lula da Silva has hit back against Donald Trump’s looming 50% tariff threat, declaring Brazil will negotiate as a sovereign nation and not submit to intimidation. Lula warned against letting prosecution of Bolsonaro dictate economic decisions.

President Donald Trump signed an executive order on Wednesday implementing an additional 40% tariff on Brazil, bringing the total tariff rate for the country to 50%, per the White House.