Investing.com -- Lumber futures have climbed to their highest level in over two and a half years following U.S. President Donald Trump's recent directive to investigate lumber imports into the U.S. and to immediately increase U.S. timber production. Trump's request to the Commerce Department on Saturday was aimed at assessing the potential national security risks posed by these imports, the majority of which hail from Canada.
This investigation comes as Canada faces the looming 25% tariff on its goods, set to be imposed on Tuesday.
In the wake of this news, lumber futures in Chicago experienced a 3.5% increase, reaching $657.
Meanwhile, the share prices of certain Canadian lumber companies took a hit on Monday. Interfor Corp (TSX:IFP) saw its shares fall by 9% in Toronto trading, Canfor Corporation (TSX:CFP) fell 6%, and West Fraser Timber Co Ltd (TSX:WFG) fell 3.5%.
In the U.S., Weyerhaeuser Company (NYSE:WY) gained 4.3% in New York trading, while PotlatchDeltic Corp (NASDAQ:PCH) gained 2%.