Brazilian assets saw volatility spike as traders rushed to assess the endgame of President Donald Trump’s threat to impose 50% tariffs on all goods from the South American nation.

Tarcísio de Freitas, governor of São Paulo state and a former infrastructure minister under Bolsonaro, told reporters Thursday that the U.S. tariffs would have a negative impact on the economy and for important industrial exporters from his state, including Brazilian plane maker Embraer.