Micron Technology (MU) saw its shares plummet 6.90% in after-hours trading on Wednesday, as the semiconductor industry reeled from U.S. President Donald Trump's announcement of reciprocal tariffs on trading partners. The sharp decline came amid a broader selloff in chip stocks, with Micron being one of the hardest hit in the sector.

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 sent shockwaves through the tech sector, particularly affecting companies like Micron that are heavily involved in global supply chains.

Industry experts have expressed concerns about the potential impact of these tariffs on the semiconductor industry. 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." While some market observers suggested that part of this impact might have been anticipated, the announcement still triggered a significant selloff in the sector, with Micron's steep decline reflecting investors' worries about potential disruptions to its operations and increased costs.