Good morning. Mexico gears up to put 50% tariff on Chinese cars. Spotify starts rolling out higher-quality sound to its paying subscribers. And anti-Beijing sentiment hits NASA. Listen to the day’s top stories.

— Samantha Stewart

Another tariff hit. Mexico is looking to slap levies of as much as 50% on cars and auto parts from China and other countries, the economy minister said. The measure would also apply to steel and textiles. Chinese drugs are also set to feel the heat, with the New York Times reporting that the US government is discussing severe restrictions on medication from the country. Ahead of a meeting between the leaders of both nations, Defense Secretary Pete Hegseth told his Chinese counterpart that the US isn’t seeking conflict with Beijing nor is it pursuing regime change.

Chip-design software maker Synopsys is also reeling from the trade war. Shares of the firm nosedived the most in more than three decades Wednesday after it warned that US export restrictions are contributing to a slowdown in China, the largest market for semiconductors. CEO Sassine Ghazi said that a push to develop its own intellectual property isn’t achieving the desired results—partly because of the challenges in China. 

Larry Ellison briefly surpassed Elon Musk as the world’s richest person after Oracle jumped the most since 1992, lifting his fortune by $89 billion to about $383 billion. The one-day gain is the biggest ever in the Bloomberg Billionaires Index. The software firm’s share price has been on a tear as big deals with the likes of OpenAI and Nvidia fuel a turnaround at its cloud infrastructure unit. 

Prime Minister Shigeru Ishiba’s resignation earlier this week has left Japan’s ruling party with a decision that will determine its future direction under a new leader. Already, Toshimitsu Motegi, a former foreign minister and party secretary-general, formally announced his entry into the race Wednesday. More announcements are expected this week or next. Here’s a look at the potential contenders to replace Ishiba.

Hong Kong’s legislature rejected a landmark bill that would have formally recognized same-sex partnerships, disappointing gay couples while plunging the city into legal uncertainty by defying a top court order. It’s a blow to the LGBTQ community and risks undermining the city’s image as an inclusive hub for international business and talent.

Deep Dive: High Fidelity

Source: Spotify

Spotify is pulling out the big guns to win over nonpaying listeners. The streamer is introducing higher-quality sound to its best customers as part of the company’s efforts to boost the appeal of its premium service. Bloomberg Intelligence expects the move may foreshadow a price hike.

• They’re a bit late to the party. Though Spotify has been working on plans for lossless audio since 2021, its major competitors Apple and Amazon already offer such a feature.
• The move may even signal that the release of the firm’s planned Music Pro subscription, a new super-fan streaming service, is imminent. In February, Bloomberg reported that Spotify will roll out the new plan—which would include higher-quality audio, remixing tools and access to concert tickets—later this year.
• It marks yet another upgrade at the streamer. Back in 2023, the Swedish audio streaming company began offering paying subscribers 15 hours of audiobook listening a month as part of its bid to attract new subscribers and keep existing customers on the platform longer. 

The Big Take

Opinion

The US and India would be wise to reconsider where their true long-term interests lie, and not let tariffs tank their relationship, Bloomberg’s editors write. The White House must remember that the logic of American support for India hasn’t changed, while leaders in New Delhi shouldn’t be distracted by anger.