As Brazil’s Luiz Inacio Lula da Silva and Donald Trump trade blows, the person they are fighting over has sent mixed signals to investors trying to divine who will blink first.

Brazil’s President forcefully rebuked Trump after the U.S. leader called the prosecution of Lula’s predecessor, Bolsonaro, a “witch hunt” and hiked tariffs on the Latin American nation.

Brazilian President Luiz Inácio Lula da Silva had said that he would impose retaliatory tariffs on the United States if Trump follows through on a pledge to increase levies by 50% in response to the South American country's criminal trial against his predecessor,