Shares of Micron Technology (MU) plunged 7.92% in pre-market trading on Thursday, as the semiconductor industry reels from the announcement of new tariffs by former U.S. President Donald Trump. The sharp decline comes amidst a broader sell-off in tech stocks, with chip manufacturers being particularly hard hit.

Trump's proposed "reciprocal tariffs" include a 34% duty on Chinese imports and a 20% tariff on goods from European nations, along with a baseline 10% tariff on all imports to the United States. This move has sent shockwaves through the global semiconductor supply chain, of which Micron is a key player. Industry experts warn that these tariffs, if implemented, could significantly disrupt operations and increase costs for chip manufacturers.

The semiconductor sector, heavily reliant on international trade and complex global supply chains, appears to be one of the most vulnerable to these new trade tensions. Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors, emphasized the potential impact, stating, "For chips, PCs, semiconductors and server manufacturers, these tariffs, if they hold, will be quite disruptive." This sentiment is reflected in the broader market, with other major chip stocks like Nvidia, Broadcom, and AMD also experiencing significant pre-market declines.

Micron's substantial drop also aligns with a larger tech sector downturn, as mega-cap growth stocks face selling pressure. With the possibility of increased production costs and potential supply chain disruptions, investors appear to be reassessing their positions in semiconductor stocks. As markets open, all eyes will be on Micron and its peers to see how they navigate this challenging trade environment and what it might mean for the future of the global chip industry.