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Toyota’s Financial Outlook Dampened by Tariffs and Yen Strength

Toyota vehicles await shipment at the Port of Nagoya in Japan last month.

In the face of global economic turbulence, Toyota Motor, the world’s largest automaker, is bracing for a 21% drop in profits this fiscal year. This projection is influenced significantly by the pressures from U.S. tariffs and an appreciating yen, both of which overshadow the otherwise robust demand for hybrid vehicles.

For the year ending March 2026, Toyota forecasts an operating income of 3.8 trillion yen, roughly $26 billion, marking a reduction from the 4.8 trillion yen reported the previous year. This aligns with predictions from industry analysts, yet the looming impact of tariffs on U.S.-bound exports remains a concern.

In addition to tariffs, Toyota faces the challenge of rising material costs intensified by the yen’s strength. Expanding its production base in the U.S. could mean higher labor expenses and increased investment needs—a double-edged sword many global automakers are dealing with.

Meanwhile, Toyota’s sales in China’s competitive market, although better than some competitors, continue to battle against strong local brands.

A New Twitter-Inspired Social Network Is Taking Shape

A new social network called Twitter.now is entering the market, with a founding team that includes former Twitter trademark counsel Stephen Coates. The service is being developed by startup Operation Bluebird.

As Ars Technica reported, X sued the company last year and asked a Delaware judge to block the launch. Operation Bluebird argued in a petition that X had abandoned trademarks including “Twitter” and “Tweet.”

Coates has said the project is not an attempt to recreate the original Twitter. In a LinkedIn post, he described the platform as a new public space focused on trust, transparency and user choice.

AI System To Rate Posts

Twitter.now is currently being tested, with early access priced at $20. Its main feature is VERA, an AI system designed to evaluate posts, verify claims and provide sources and context.

Posts receive a trust score, with users eventually able to set a minimum score to filter their feeds. The company says this approach will give people more control over what they see instead of leaving those decisions entirely to an algorithm.

Moderation Remains A Challenge

Scaling moderation will be one of the platform’s biggest tests. Social networks have repeatedly struggled with content moderation as their communities grow, and newer platforms such as Bluesky have faced similar criticism.

Operation Bluebird says VERA will form the basis of its moderation and verification system. A second version is already planned, with expanded tools that would let users set a specific trust threshold for the posts appearing in their feeds.

For now, Twitter.now remains in an early testing phase, combining the familiarity of the Twitter name with an AI-driven approach to evaluating online information.

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