Micron Technology (MU) saw its shares plummet 6.90% in a 24-hour period, with the stock particularly affected by after-hours trading on Wednesday. The significant drop came in response to U.S. President Donald Trump's announcement of reciprocal tariffs on trading partners, which sent shockwaves through the semiconductor industry.

President Trump unveiled a plan to impose reciprocal tariffs, including a 34% tariff on China and a 20% tariff on the European Union, as a response to duties on U.S. goods. Additionally, he proposed a 10% baseline tariff on all imports to the United States. This news triggered a substantial reaction in the chip sector, with several major players experiencing notable declines in extended trading. Micron Technology was among the hardest hit, with its stock initially falling 4% to $85.05 in after-hours trading before extending losses.

Industry experts have weighed in on the potential consequences of these tariffs. Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors, warned, "For chips, PCs, semiconductors and server manufacturers, these tariffs, if they hold, will be quite disruptive." The proposed tariffs are expected to have far-reaching implications for the global semiconductor supply chain, potentially increasing costs and disrupting operations for companies like Micron. While some market observers noted that part of this impact might have been anticipated, the announcement still triggered a significant selloff in the sector, reflecting investors' concerns about the potential long-term effects on the semiconductor industry's profitability and growth prospects.