China tightens trade rules as Canadian tariffs spark price volatility

Mei Mei Chu and Ella Cao

Tue, Mar 11, 2025, 4:55 AM 2 min read

By Mei Mei Chu and Ella Cao

BEIJING (Reuters) - Zhengzhou Exchange connected Tuesday raised the trading borderline requirements for immoderate rapeseed repast futures contracts to 9% from 7% aft Beijing's 100% tariff connected Canadian imports triggered a two-day rally that pushed prices to a five-month high.

The astir progressive rapeseed repast futures declaration surged 7.23% to adjacent astatine 2,684 yuan per metric ton, gathering connected a 6% summation successful the erstwhile session, to its highest since September 2024.

The caller trading borderline requirements volition beryllium effectual from colony connected March 12.

China connected Saturday shocked markets with a 100% tariff to conscionable implicit $1 cardinal of Canadian rapeseed oil, lipid cakes and pea imports, and a 25% work connected $1.6 cardinal worthy of Canadian aquatic products and pork.

The tariff announcement has sparked heightened marketplace volatility, prompting the speech to instrumentality stricter borderline rules to negociate risk.

Earlier connected Monday, the speech accrued the minimum bid size for rapeseed repast futures contracts to curb tiny capitalist information and stabilise prices.

According to Chinese customs data, China imported 2.02 cardinal tons of rapeseed repast from Canada successful 2024, accounting for 73% of its full imports. Other large suppliers see the UAE, Russia and Ukraine.

"After tariffs, importers whitethorn look losses and declaration defaults. Spot proviso is capable now, but reduced imports could tighten aboriginal supply. For rapeseed meal, request whitethorn request to beryllium curbed portion monitoring shifts successful the planetary commercialized chain," a China-based trader said.

"In the abbreviated term, this is expected to person minimal interaction connected the home proviso of edible rootlike oils. However, the semipermanent effects of the commercialized argumentation implementation volition necessitate further attention," the Agriculture Ministry said successful a monthly report.

(Reporting by Ella Cao and Mei Mei Chu; Editing by Andrew Heavens and Ed Osmond)