Toyota sees 21% full-year profit decline as tariffs take a bite
In the latest example of how global trade disruption is hitting bottom lines, the world's top-selling car manufacturer said it expected operating income to total ¥3.8-trillion (R474.2bn) in the year to March 2026, vs ¥4.8-trillion (R602.36bn) in the year that just ended.
Toyota's results also show how the tariffs have the potential to hit companies on a number of fronts simultaneously. While the carmaker estimated the levies directly costing it ¥180bn (R22.6bn) in April and May, it said currency movement would be the biggest single impact on its full-year forecast, at ¥745bn (R93.45bn).
Uncertainty around Trump's tariffs and their implication for global trade have weighed on the dollar. For Toyota, a weaker dollar means less profit when US earnings are brought home.
CEO Koji Sato told a press conference details of the tariffs were largely unclear, adding to the difficulty in navigating them.
'Whether these tariffs are permanent and what will happen is not something we can decide,' Sato said.
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IOL News
10 minutes ago
- IOL News
Does the BRICS currency threaten the dollar?
According to economists and political analysts, one of the main reasons for Trump's economic rhetoric has to do with US fears that BRICS countries are embarking on a strategic plan to dethrone the dollar, or de-dollarise the world, as some observers put it. Some people may be wondering why the US President has been acting out in recent months, threatening to impose tariffs, at times in a seemingly excessive manner. Economists and political analysts suggest that one of the main reasons for Trump's economic rhetoric is the United States' concern that BRICS countries are initiating a strategic plan to undermine the dollar, a process some observers refer to as "de-dollarisation''. The BRICS grouping includes Brazil, Russia, India, China, and South Africa and a few other countries that joined in the past couple of years. It all started in Kazan, Russia, during the 16th BRICS summit last year when these countries unveiled a symbolic BRICS banknote, unleashing hot debate regarding the US dollar's dominance. At the time, Russian President Vladimir Putin emphasised that the dollar is being used as a ''weapon.'' A year before, meanwhile, Brazilian President Luiz Inácio Lula da Silva proposed creating a new, common currency in South America to reduce its reliance on the dollar in international trade. India has also been advocating for local currency settlements among BRICS nations. The unveiling of the BRICS currency bill, featuring the Taj Mahal, added controversy, as the bloc explores challenging the US dollar's global financial power. Despite research showing that the US dollar remains the primary reserve currency, Trump would take none of that as he continued his criticism of BRICS. "We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar or, they will face 100% Tariffs,'' he wrote in his Social Truth platform in January. The statement was similar to the one he posted last November. According to Bloomberg, Brazil and South Africa have criticised Trump separately for his anti-BRICS comments, while India has refrained from responding publicly, signalling that it is walking a fine line in maintaining its relationship with Washington. Would a BRICS currency threaten the dollar? Political analyst Anda Mbikwana offers his insights on the issue. 'The unveiling of a symbolic BRICS banknote at the St. Petersburg International Economic Forum represents far more than ceremonial posturing — it signals a deliberate escalation in the bloc's strategy to construct alternative financial architectures that could fundamentally reshape global monetary dynamics. ''While critics may dismiss this $200 denomination note as mere symbolism, the careful design choices reveal sophisticated strategic thinking. The front's display of founding member flags alongside the reverse featuring partner nations creates a visual narrative of expanding multipolarity that directly challenges the hierarchical nature of the dollar-dominated system. ''This imagery reinforces BRICS' positioning as what President Putin has characterised as 'non-western' rather than 'anti-western' — a crucial distinction that broadens its appeal across the Global South.'' The Technological Infrastructure Behind De-dollarisation ''The symbolic banknote masks more substantive developments in BRICS' financial infrastructure. Russia's emphasis on blockchain-based payment systems and central bank digital currencies represents a technologically sophisticated approach to circumventing traditional dollar-denominated channels. ''These systems offer practical alternatives to SWIFT and correspondent banking relationships that have become increasingly weaponised through sanctions regimes.'' And how does this directly affect South Africa, one might ask. Said Mbikwana: ''For South Africa, this development presents both opportunities and challenges. Greater financial integration within BRICS could reduce transaction costs and currency exposure risks in trade with major partners. ''However, it also requires careful navigation of relationships with Western economies that remain crucial for South African exports and investment. The Reserve Bank's approach to central bank digital currency development will become increasingly strategic as these alternative payment systems mature.'' According to Mbikwana, despite BRICS' banknote symbolic significance, fundamental economic realities limit BRICS' ability to quickly displace dollar dominance. ''The United States retains unparalleled capital market depth, institutional credibility, and network effects that have historically proven resilient to challengers. Moreover, internal coordination challenges within BRICS — particularly between China and India — limit the bloc's ability to present a unified monetary alternative.'' The BRICS symbolic banknote, added Mbikwana, should be understood not as an immediate threat to dollar hegemony, but as a manifestation of longer-term structural shifts in global economic governance. ''Its significance lies not in its current form, but in its representation of institutional momentum toward financial multipolarity. ''American opposition to these developments may paradoxically accelerate their adoption by reinforcing perceptions of dollar weaponisation among emerging economies. ''The ultimate question is not whether BRICS can immediately supplant the dollar, but whether it can create sufficient institutional alternatives to reduce the international community's dependence on dollar-denominated systems. In this context, symbolic gestures serve as important markers of political will and institutional capacity — prerequisites for any serious challenge to existing monetary hierarchies.'' The purpose of the banknote will serve as a payment system designed to facilitate transactions within the BRICS bloc using local currencies and potentially central bank digital currencies. While a BRICS currency could potentially challenge the US dollar's dominance, it's unlikely to replace it entirely soon. There is ongoing development and testing, with a pilot programme potentially appearing before the end of 2026. Some economists are criticising Trump for threatening the BRICS, according to a CBS News report, saying it makes the US look weak. "It isn't a good look, as it indirectly elevates the stature of a non-threat and suggests a lack of confidence in the dollar," Brad Setser, a senior fellow at the Council on Foreign Relations and former Treasury Department economist, wrote on X.
The Citizen
5 hours ago
- The Citizen
WATCH: Lamb Champs turns up the heat for 2025 with flavour, flair and farm pride
WATCH: Lamb Champs turns up the heat for 2025 with flavour, flair and farm pride South Africa's favourite lamb competition, Lamb Champs, is back for its fourth year and promises to be bigger, bolder and more flavour-packed than ever before. Organised by the Southern African Agri Initiative (Saai) and supported by Pick n Pay and Toyota, the annual event shines a spotlight on family farmers and the high-quality lamb they produce. This year's competition has already attracted 250 entries. Farmers from across the country will compete in four regional rounds, all leading up to the national grand final at the Nampo Grounds in Bothaville on October 17. According to Francois Rossouw, CEO of Saai, the competition is more than just a showcase of premium lamb. 'Lamb Champs is about honouring the real people behind every chop, the farmers who work hard every day to bring quality meat to South African tables,' said Rossouw. Qualifying rounds across the country The 2025 qualifying rounds are taking place on the following dates and locations: July 26 at Loftus Versfeld Stadium in Pretoria September 6 at Parys Afridome in the Free State September 24 at Hoër Landbouskool in Paarl in the Boland The first round saw Lize Mans from Kakamas walk away with R40 000 and earn her spot in the grand final. Family farmers who raise lamb anywhere in South Africa are encouraged to enter. Judges score the meat based on taste, tenderness, appearance and overall quality. More than a competition With Toyota behind the wheel, Lamb Champs gives farmers a chance to share their stories, meet consumers and reach new markets. The campaign also celebrates the heritage and sustainability of sheep farming in South Africa. As part of the initiative, Lamb Champs branded lamb cuts sourced directly from participating farmers are now available at selected Pick n Pay stores nationwide. This supports local farmers while giving shoppers access to premium, ethically sourced meat. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
5 hours ago
- IOL News
Trump wants his Coca-Cola made in Mexico
Coca Cola in Mexico is made with cane sugar rather than corn starch. Now trump wants in available in the US too Image: Supplied Emily Heil Mexican Coke, which is made with real sugar, unlike the US version sweetened with high-fructose corn syrup, has many fans - and American soda drinkers might soon have more options for getting their sweet cola fix. President Donald Trump on Wednesday wrote on Truth Social that he had been in touch with Coca-Cola executives, who he wrote had agreed to produce the nation's top-selling soft drink domestically using cane sugar, as it is done south of the border. 'I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so,' Trump wrote. 'I'd like to thank all of those in authority at Coca-Cola.' He put in a personal plug for the product, even though the president famously drinks Diet Coke, which is made with the sugar substitute aspartame. 'This will be a very good move by them - You'll see,' he wrote. 'It's just better!' Coca-Cola did not confirm any details, but the company suggested in a statement Wednesday that any changes were still in the pipeline. 'We appreciate President Trump's enthusiasm for our iconic Coca-Cola brand,' the company said. 'More details on new innovative offerings within our Coca-Cola product range will be shared soon.' The move bore classic Trump earmarks: leaning on a private company to bend to his will, and announcing changes with more hype than details. It follows the tack taken by Health and Human Services Secretary Robert F. Kennedy Jr., who has championed a 'Make America Healthy Again' agenda that includes pushing food companies to remove artificial dyes and other additives from their products. A report by the 'MAHA Commission' in May pointed out high-fructose corn syrup as a factor in obesity and related diseases. Scientists have said there is minimal nutritional difference between sugar and high-fructose corn syrup. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Coca-Cola introduced high-fructose corn syrup into its signature cola in the mid-1980s, spurred by low prices for U.S. corn that were bolstered by federal subsidies to corn farmers. Trump's announcement proved immediately unpopular with the makers of corn syrup, who suggested that importing cane sugar would be more expensive than utilizing a domestic product - and run counter to Trump's stated agenda of boosting American products and manufacturers. 'Replacing high fructose corn syrup with cane sugar doesn't make sense,' Corn Refiners Association President and CEO John Bode said in a statement on Wednesday night. 'President Trump stands for American manufacturing jobs, American farmers, and reducing the trade deficit. Replacing high fructose corn syrup with cane sugar would cost thousands of American food manufacturing jobs, depress farm income, and boost imports of foreign sugar, all with no nutritional benefit.' Soda aficionados have long sought out Coke made in Mexico, which its devotees say tastes crisper and less saccharine than its American counterpart.
