The price of a vital construction material has spiked in the U.S. after the Trump administration launched an investigation into foreign wood imports.

U.S. lumber futures rose as high as $679 on Tuesday morning, the highest they have been since August 2022.

The spike began Monday, on the eve of new tariffs directed at Canada, Mexico and China, and follows the Department of Commerce's launch of an investigation into how lumber imports from countries like Canada, Brazil and Germany impact national security, unnamed sources told Bloomberg.

The investigation will reportedly look into whether those countries are dumping lumber into U.S. markets at the expense of the American economy and national security, Bloomberg reported.

About 30% of softwood lumber used in the U.S. comes from Canada, more than any other trading partner. Slumping values for Canadian wood companies on Monday pushed Interfor Corp.'s stock down by nearly 10%, while Canfor Corp. shares fell by about 3.5%.

The U.S. is heavily reliant on Canadian imports, but over the weekend, President Donald Trump signed an executive order meant to bolster the domestic lumber industry.

“It cuts red tape in order to streamline timber production and identifies measures to boost timber sales from public lands,” according to a White House statement.

That includes an effort to speed up the review process that ensures timber companies comply with the Endangered Species Act.

The U.S. Lumber Coalition, a trade group, released a statement in support of the Trump administration’s investigation.

“We know that foreign governments such as Canadian federal and provincial governments subsidize the Canadian lumber industry to promote employment and disruptive excess Canadian lumber production that is then dumped into the U.S. market to the detriment of U.S. companies and workers,” Stimson Lumber Co. owner Andrew Miller said in the release.

But Trump’s plan was panned as “reckless and ill-conceived” in a statement from environmental group Oregon Wild.

The president’s 25% tariffs on Mexico and Canada went into effect on Tuesday. Canada has responded with its own retaliatory tariffs on $100B worth of U.S. goods.

Trump also plans to place a new 10% tariff on China, in addition to the 10% he levied last month.