Micron Technology (MU) shares tumbled 5.01% in after-hours trading on Wednesday, following U.S. President Donald Trump's announcement of reciprocal tariffs on trading partners. The news sent shockwaves through the semiconductor industry, with several chip stocks experiencing significant declines.

President Trump unveiled a chart displaying reciprocal tariffs, including a 34% tariff on China and a 20% tariff on the European Union, as a response to duties imposed on U.S. goods. Additionally, Trump stated he would implement a 10% baseline tariff on all imports to the United States. This move is expected to have far-reaching implications for the global semiconductor supply chain, potentially increasing costs and disrupting operations for companies like Micron.

Industry experts weighed in on the potential impact 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." Other major chip stocks also felt the pressure, with Nvidia falling 3.2%, Broadcom down 4.8%, and Advanced Micro Devices declining 3% in after-hours trading. While some market observers, like Ben Bajarin, CEO and principal analyst at Creative Strategies, noted that part of this impact might have been anticipated, the announcement still triggered a selloff in the sector.