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Trump wants Musk's firms to thrive in US, says he won't pull subsidies
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Mint
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US yields reverse course to trade lower ahead of Fed, trade talks
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Indian Express
an hour ago
- Indian Express
Trump's 50% tariff threat hits Brazilian chemical exports as US orders cancelled
Brazilian chemical exporters are seeing contracts cancelled after US President Donald Trump announced plans to impose a 50% tariff on Brazilian goods starting 1 August, Reuters reported. Brazil exported about $2.4 billion worth of chemical products to the United States last year. Since the tariff threat, orders for some products including resins and compounds used to make fertilisers have been cancelled, said Andre Cordeiro, head of Brazilian chemical industry group Abiquim. 'These decisions are being made because people believe he will actually go ahead with the tariff,' Cordeiro told Reuters on Friday. He said one company had all of its US export contracts cancelled, while others lost parts of their orders. In some cases, exporters had already arranged financing before the cancellations. Cordeiro did not name the affected companies. The impact is not limited to direct chemical exports. 'No one produces coffee, even grains, without some kind of chemical product in the process,' he said. According to Cordeiro, chemical firms are also losing domestic sales to Brazilian companies that export to the US. He cited plywood manufacturers, who use chemicals for bonding and have also lost orders, and orange juice producers, who rely on chemical preservatives. Last year, 42% of Brazil's orange juice exports went to the US. Large firms such as Braskem and Dow Chemical may also be affected. Braskem has operations in the US, while Dow, which runs 10 plants in Brazil, exports silicon metal to the American market. Neither company commented when contacted by Reuters. Exxon Mobil, which also operates in Brazil, declined to comment. Abiquim says the tariffs are unjustified, pointing out that Brazil's chemical sector runs a $7.9 billion trade deficit with the United States.
Time of India
an hour ago
- Time of India
Cryptic poser: Does your rival find you fit and proper for crypto biz?
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel MUMBAI: Amid the crypto frenzy fuelled by Trump and the digital asset making inroads, new players planning to set up shop in India are dealing with a curious rule: they need 'fit and proper' certificates-not from government agencies or any of financial market regulators , but from existing cryptocurrency service a regulatory void, judging the 'fit and proper' quality of a new applicant has been left to existing virtual digital asset (VDA) service providers (SPs). Some of the applicants are discovering that the rule, introduced early this year, not only runs into conflict of interests, but poses other complexities as cryptos are vulnerable to money laundering and cyber in most financial markets too insist on such a certificate to evaluate the integrity, ethical standing, and track record of new managers and entities. For instance, in safeguarding the interests of depositors and investors, persons applying for a banking license and intermediaries like stock brokers have to qualify as 'fit and proper'. But, here the assessment is done by the respective regulator ( RBI or Sebi )-and not by peers or other business and competing organisations in the case of VDAs, the rule stems from a January 2025 communique to VDA SPs from the Financial Intelligence Unit (FIU). An agency under the ministry of finance, FIU is dedicated to curb money laundering and terror finance. VDASPs like crypto platforms exchanges, brokers, and custody service firms providing crypto wallets are "reporting entities" sharing information, as banks do, with the 'fit and proper' is one of the conditions a VDA SP must satisfy to register itself with FIU. Failure to register is in itself a non-compliance with the Prevention of Money Laundering to the January 2025 notification, one of the steps towards registration requires "fit and proper certificate from the FIU IND registered VDA SP(s), in all cases where the applicant VDA SP is into relationship/agreement (B2B/broker/other relationship etc) with the former (either ongoing/prospective/intended)."This widely-worded directive can be interpreted to mean that a new applicant (be it a crypto exchange or an intermediary) could require multiple certificates from different SPs. A custody provider may partner with multiple exchanges and intermediaries, while an exchange may draw liquidity from another to Purushottam Anand, advocate and founder of Crypto Legal , a Bengaluru-based blockchain and crypto-focused law firm, "The 'fit and proper' requirement effectively introduces a disqualification criterion for entities seeking registration as VDASP. Yet, it provides no defined parameters or standards for registered VDASPs to apply during their assessment. There is a complete lack of guidance on the manner, scope, or extent of scrutiny to be conducted by existing VDASPs. In the absence of clarity, new applicants may be compelled to disclose sensitive and confidential business information to potential competitors. Courts have consistently held that vague, arbitrary, and subjective conditions-particularly those introduced through delegated legislation-are legally untenable and liable to be struck down."The requirement may prove self-defeating where an applicant is compelled to seek certification from a competitor, said Harshal Bhuta, partner at the CA firm P. R. Bhuta & Co. "Moreover, obtaining such certification from several service providers may not be straightforward, given the recent cyberattacks and the liability associated with issuing such certificates. A more effective alternative would be for the government to provide recognition to Self-Regulatory Organisations (SROs) and authorise them to issue certificates," said the past one year, two Indian crypto exchanges lost substantial amounts in cyberattacks. And law enforcement authorities fear that cryptos are misused to move money across the border, bypassing banking channels. Coins withdrawn from an exchange wallet can be transferred to private wallets and other wallet owners in various jurisdictions. Recently, FIU advised platforms to keep a watch on transactions linked to persons in border areas. Data requests from the agency has also gone up, said an exchange official."The ministry has streamlined the registration process, which includes having an in-person meeting with the FIU-IND, submission of prescribed documents, etc. These requirements should be carefully looked into by applicants, especially the clause which requires the VDA-SP to furnish a 'fit and proper' certificate from FIU-IND registered VDA-SPs in all cases where the applicant VDA-SP is into a relationship with the former," said Raghav Bajaj, counsel, Khaitan & to FIU and the crypto industry lobby BharatWeb3 went unanswered till the time of going to press.
