By Marcela Ayres, Bernardo Caram and Lisandra Paraguassu BRASILIA (Reuters) -Brazil's government has set aside for now plans for direct retaliation against steep U.S. tariffs taking effect this week,

Trump has set a whopping 50% tariff on Brazilian goods - the highest rate levied by the US on a country thus far.

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.