Micron (MU -4.32%) stock lost ground in Tuesday's extremely volatile trading session. The company's share price closed out the day down 5.2% despite having been up as much as 6.7% earlier in the day. Meanwhile, the S&P 500 and the Nasdaq Composite ended the session down 2.1% and 2.9%, respectively.

The stock market jumped early in today's trading following news that trade negotiations between the U.S. and Japan were imminent, but the gains didn't hold. Some investors took the rebound rally as an opportunity to move out of stocks, and sell-offs intensified after the Trump administration confirmed plans for tariffs totaling 104% on products from China.

Micron stock sinks again on tariff concerns

News that a team of officials from Japan will meet with Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer to negotiate a bilateral trade agreement helped spur rebound momentum for the stock market this morning, but the bullish backdrop didn't last for long. The Trump administration's confirmation that tariffs on Chinese goods will rise to a cumulative 104% at midnight prompted a bearish reversal for the market. Making matters worse for Micron, Greer stated that tariff exemptions for semiconductors and pharmaceuticals were in place because those categories required "their own investigations."

What comes next for Micron?

Micron is a U.S.-based company, but it does rely on manufacturing facilities in countries including Taiwan and Japan to produce some of its memory chips and storage solutions. If tariffs were to be applied to its foreign-sourced products, the company could wind up facing significant performance headwinds. Even if tariffs are not applied to its products in the U.S., there's a risk that it could face higher import taxes in other markets and see weaker overall demand as customers adjust purchases in response to weaker growth outlooks.