President Trump’s announcement of tariffs on microchips caused Micron Technologies stock to drop over 3% on Friday. Trump stated he will set tariffs on steel and chips in the coming weeks, with rates initially low but expected to rise significantly. This news impacts chip companies with manufacturing facilities in Asia.

Micron, like many U.S. chip companies, relies on Asian factories for production. Trump’s proposed tariffs will affect companies such as Micron with facilities in Malaysia, Singapore, Japan, and Taiwan. Micron has not yet responded to the president’s plan, and investors are advised not to make hasty decisions until the tariffs are officially implemented.

Before buying Micron Technology stock, consider that it was not among the 10 best stocks identified by the Motley Fool Stock Advisor team. Past recommendations like Netflix and Nvidia have seen significant returns. Stock Advisor boasts a total average return of 1,071%, outperforming the S&P 500’s 185%.

Investors are urged to be cautious with Micron Technology stock amidst President Trump’s tariff announcements. The potential impact on chip companies and the uncertainty of the actual implementation of tariffs could lead to market volatility. Stay informed and consider long-term investment strategies based on comprehensive analysis and research.

Read more at Yahoo Finance: Why Micron Technologies Stock Was Flopping on Friday