Money managers from Aberdeen Group Plc to Franklin Templeton are staying bullish on Brazil, betting the country will withstand its unexpected turn in the epicenter of Donald Trump’s trade war. One reason: The fairly closed Brazilian economy,

Protestors in Sao Paulo made an effigy of the US president, and then set it on fire. As the paper POTUS went up in flames, they cheered and chanted "Brazil is ours," and "Trump out." The protest was in response to the Trump administration's plan to increase tariffs on imports of Brazilian goods from 10% to 50%.

The president signaled he would seek to use the threat of steep levies to reorient trade and protect his political allies.

Brazil believes it can withstand Trump’s 50 percent tariff, and aides to Lula say he is unlikely to shrink from a confrontation with the White House.

By Luciana Magalhaes and Ricardo Brito BRASILIA (Reuters) -When U.S. President Donald Trump linked 50% tariffs on Brazil to the trial against his ally, the country's former far-right leader, Washington left Latin America's largest economy with few options to deescalate but may have overestimated the country's vulnerability to the levies.

President Donald Trump on Saturday announced 30% tariffs on the European Union and on Mexico, cementing a new high level of levies with key trading partners ahead of an Aug. 1 implementation.