Micron Stock Plummets 16% in Two Days Amid Tariff Fears, Trading Volume Soars to 21st Place

On April 3, 2025, Micron Technology Inc. (MU) experienced a significant decline, with its stock price dropping by 16.09% over two consecutive days. The company's trading volume reached $34.42 billion, marking a 169.67% increase from the previous day and placing it 21st in the day's trading volume rankings.

Micron's stock decline was primarily driven by President Trump's announcement of reciprocal tariffs on all US imports. This move is expected to significantly impact the semiconductor industry, as China, Vietnam, and Taiwan are major exporters of servers and computer chips to the US. The new tariffs, which will take effect on April 9, include a 34% tariff on imports from China and a 32% tariff on imports from Taiwan. These tariffs are in addition to the existing 20% tariffs on Chinese imports, resulting in a total tariff rate of 54% on Chinese goods.

Micron, which supplies memory chips for various tech companies, is particularly vulnerable to these tariffs. The increased costs associated with importing chips from affected countries could lead to higher prices for Micron's products, potentially reducing demand and impacting the company's financial performance. Additionally, the uncertainty surrounding the tariffs and their potential long-term effects on the semiconductor industry could further weigh on Micron's stock price.

Despite the challenges posed by the tariffs, Micron's management team has been proactive in preparing for the upcycle in semiconductor sales. The company's strategic planning and execution have positioned it well to navigate the current market conditions and capitalize on future growth opportunities. However, the immediate impact of the tariffs on Micron's stock price highlights the need for continued vigilance and adaptability in the face of evolving market dynamics.