Brazil scrambled to craft a measured but strong response to US President Donald Trump’s surprise tariff hike on Thursday in hopes of shielding key industries, while analysts predicted the tariffs would drive the country closer to China.

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.

RIO DE JANEIRO (AP) — Brazilian President Luiz Inácio Lula da Silva said Thursday that he will impose retaliatory tariffs on the United States if President Donald Trump follows through on a pledge to boost import taxes by 50% over the South American country’s criminal trial against his predecessor, Jair Bolsonaro.